DALLAS (

TheStreet

AT&T's

(T) - Get Report

directors have approved a 2.4% increase in the company's quarterly dividend as well as plans to repurchase 300 million shares.

In a statement released on Friday, AT&T announced that it will increase its quarterly dividend from 42 cents to 43 cents a share, or $1.68 to $1.72 cents a share on an annualized basis.

The telecom giant also announced a new share repurchase authorization for 300 million shares, which represents approximately 5% of outstanding shares.

"This dividend increase, combined with the repurchase authorization, reflects the board's confidence in our ability to generate strong cash flows," said AT&T's CEO, Randall Stephenson, in a statement.

AT&T shares dipped 8 cents, or 0.27%, to $29.15 on Friday, despite a modest rise in tech stocks that saw the Nasdaq rise 0.17%.

--Written by James Rogers in New York.

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