The quarterly dividend rate was increased to 47 cents from 46 cents a share on a quarterly basis, or an increase to $1.88 from $1.84 per share on an annualized basis.
The dividend will be payable on February, 2, 2015 to common stockholders of record on January 9, 2015.
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Separately, investors are watching the government's auction for wireless airwaves closely and may be betting that AT&T will take on more debt than initially expected, which looks risky as competition weighs on industry margins, the Wall Street Journal reported.
About 26.6 million shares changed hands by 3:38 p.m. in New York, compared to the average of 24.43 million shares.
TheStreet Ratings team rates AT&T INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate AT&T INC (T) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."