--- title: "This Company Looks Like a Dividend Champion in the Making, and It Could Announce Another Dividend Hike Next Month" description: "T-Mobile is emerging as a potential Dividend Champion, having initiated its dividend in 2023 and recently increasing it by 35%. The company reported strong second-quarter earnings with a 14% rise in d" type: "news" locale: "en" url: "https://longbridge.com/en/news/253356001.md" published_at: "2025-08-17T15:34:47.000Z" --- # This Company Looks Like a Dividend Champion in the Making, and It Could Announce Another Dividend Hike Next Month > T-Mobile is emerging as a potential Dividend Champion, having initiated its dividend in 2023 and recently increasing it by 35%. The company reported strong second-quarter earnings with a 14% rise in diluted EPS and nearly 7% revenue growth, driven by significant customer additions. With a sustainable payout ratio of 31% and a free cash flow yield of 4.25%, T-Mobile is well-positioned for future dividend hikes. However, investors should be cautious of its high debt levels, totaling over $75 billion in long-term debt, stemming from multiple acquisitions since 2021. Dividend stocks can be great ways for investors to generate reliable, passive income. But finding the right ones is more difficult than you might think. That's because stocks with ultra-high dividend yields may look appealing but have underlying issues. For instance, if a company struggles and its stock sinks significantly, the dividend yield will rise, but the company could still be at risk of a dividend cut. It's key for investors to analyze company financials and make sure the company can continue to generate enough free cash flow and earnings to not only cover the dividend but also increase the dividend annually. I've found one company could be a Dividend Champion in the making and may even announce another dividend hike next month. ## Business is thriving It's one of the larger mobile carriers in the U.S., and **T-Mobile**'s (TMUS 1.77%) business has been thriving. Investors have rewarded the stock, sending shares up over 14% this year as of Aug. 14. For the second-quarter, T-Mobile reported diluted earnings per share of $2.84, up 14% year over year. Total revenue grew nearly 7%. The solid performance was driven by new customer growth, including postpaid net customer additions of 1.7 million, the company's highest second-quarter additions ever and industry leading, according to T-Mobile. The company also grew 5G broadband customers by 454,000, up 12% year over year and industry-leading growth as well. T-Mobile's success in part stems from its marketing strategy of being the "un-carrier," which essentially means trying to be the opposite of a traditional carrier by eliminating hidden fees and not forcing customers to sign longer-term, more prohibitive contracts. Image source: Getty Images. ## A newer dividend that could grow over time T-Mobile is a relatively new dividend company, having only initiated its dividend in 2023. The quarterly dividend started at $0.65, but management hiked it to $0.88 in September of 2024, representing a 35% increase. That puts the annual yield at 1.40% at the current stock price, which is not a high dividend yield, but a quick start for a company that's been paying a dividend for less than two years. The good news is the dividend looks more than sustainable for now and there's room to grow it. The company has a trailing 12-month free cash flow yield of 4.25% and a payout ratio of nearly 31%. To put that in terms that are easier to understand, T-Mobile has paid out about $3.78 billion of dividends over the last year. Management is guiding for $17.8 billion of free cash flow this year at the midpoint of its guidance, plenty to cover the dividend payout. Another dividend hike could also be coming. When the company initiated the dividend at the end of 2023, management said their intent was to grow it 10% annually. The company declared its last dividend hike in September of 2024, meaning another hike could come next month based on the limited history we have. ## Is T-Mobile a Dividend Champion in the making? A Dividend Champion is a company that has raised its quarterly dividend for at least 25 straight years. T-Mobile is off to a good start but certainly has a long way to go, so it's no guarantee that it will become a Dividend Champion. There are some risks including high debt. At the end of the second quarter, T-Mobile had $6.4 billion of short-term debt and over $75 billion of long-term debt. Meanwhile, cash and cash equivalents were roughly $10.3 billion. Part of the reason for this debt pile is due to all of the acquisitions T-Mobile has made in recent years, with eight acquisitions since 2021. This is certainly something for investors to keep an eye on. However, the acquisitions as well as momentum in the business have translated into higher revenue and free-cash-flow growth. While I can't predict whether T-Mobile will become a Dividend Champion in 23 years, I like the trajectory of the dividend right now and certainly think the company is on the right path. ### Related Stocks - [TMUS.US - T-Mobile US](https://longbridge.com/en/quote/TMUS.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Stratix 与 T-Mobile 合作，帮助企业根据 2025 年 Gartner 企业移动服务市场指南中的洞察采取行动 | Stratix 与 T-Mobile 合作，通过提供 2025 年 Gartner®企业移动服务市场指南的洞察，提升企业移动性。此次合作旨在通过其 SmartRefresh 计划简化设备更新周期并改善成本可见性，该计划结合了生命周期管理和 | [Link](https://longbridge.com/en/news/275619136.md) | | 德国电信计划在 2026 年不出售 T-Mobile US 的股份 | 德国电信：计划在 2026 年不出售 T-Mobile 股份 | [Link](https://longbridge.com/en/news/275611151.md) | | 必和必拓利润飙升 30%，铜业务首次超越铁矿石成最大利润来源 | 全球市值最大的矿业公司必和必拓（BHP）因押注铜需求激增而获得回报，上半财年净利润同比增长近 30%。铜业务贡献了公司 51% 的基础息税折旧摊销前利润，首次超越其他业务成为最大利润来源。能源和汽车行业的强劲需求持续推高铜价，令这一转型的战 | [Link](https://longbridge.com/en/news/276092142.md) | | 期权热点｜上周五 SILJ 大涨 5%，部分看涨期权飙升 103% | 美东时间 02 月 13 日， ETFMG 小市值银矿开采勘探 ETF -ETFMG 期权总成交 92131 张，看涨期权占比 89%，看跌期权占比 10%。 | [Link](https://longbridge.com/en/news/276030246.md) | | 期权热点｜上周五 ENB 涨 3%，部分看涨期权飙升 158% | 美东时间 02 月 13 日，安桥期权总成交 95747 张，看涨期权占比 97%，看跌期权占比 2%。 | [Link](https://longbridge.com/en/news/276030225.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.