Updated 9:42 AM EST

AT&T shares hit the highest levels in three years Tuesday after the wireless carrier outlined its near-term aims for earnings and cash-flow growth as it prepares to shed its DirecTV stake and focus on expanding its 5G and fiber network.

AT&T ( T ) , which shed its media assets in a $43 billion deal with Warner Bros. Discovery ( WBD ) in 2022, is making big investments in 5G wireless and fiber internet services as part of its pure-play telecoms strategy.

AT&T dumped the last of its media assets earlier this fall when it solid its remaining 70% stake in DirecTV to private equity group TPG for $7.6 billion

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The Dallas-based group is looking to double its fiber network and expand its 5G network to 200 million homes, with 50 million fiber locations by 2029. It estimates capital investments at $22 billion over the next three years.

It also plans to defend its annual dividend, currently pegged at $1.11 a share, as part of its overall aim to return $40 billion to shareholders through dividends and share buybacks over the same period. Free cash flow is expected to rise to $18 billion by 2027.

AT&T also lifted the lower end of its 2024 profit forecast and now sees earnings in the region of $2.20 to $2.25 per share.

“Over the last four years, we’ve achieved durable and profitable subscriber growth, generated attractive returns on network investment, and strengthened our balance sheet,” said CEO John Stankey.

“We’re putting customers first to become the best connectivity provider in America. Our plan expands the country’s largest fiber network to more than 50 million total locations, modernizes our wireless network and rewards our shareholders."

Related: AT&T sells cable TV provider amid streaming service takeover

AT&T shares were marked 5.5% higher in premarket trading to indicate an opening bell price of $23.93 a move that would extend the stock's 2024 gain to around 38%.

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