A portfolio of stocks I've been building since September 3, 2019 is named Volio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the third of five communication services sector stocks striving to join my Volio folio. This could be my twenty-ninth pick for Volio!
That communication services sector includes seven industries all related to delivering messages to and from us. Those Communication services industries are: advertising agencies; broadcasting; electronic gaming and multimedia; entertainment; internet content and information; publishing; telecom services.
My subject today is a mid-cap telecom services company named, Telephone and Data Systems Inc Their trading ticker symbol is TDS. This is my first report about Telephone and Data Systems Inc.
Telephone and Data Systems Inc is a diversified telecommunications operator that provides mobile, telephone, and broadband services to more than 7 million customers.
The firm's mobile operations are conducted by its 81%-owned subsidiary, U.S. Cellular, which serves nearly 5 million wireless customers.
The firm's wireline operations are conducted by its wholly-owned subsidiary, TDS Telecom, which services nearly 1 million phone and Internet access lines in predominantly rural and suburban areas.
It sells its products through retail sales, direct sales, third-party retailers, and independent agents, as well as through Website and telesales.
The company was founded in 1968 and is headquartered in Chicago, Illinois.
I use three key data points to gauge dividend equities or funds like Telephone and Data Systems Inc (TDS):
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
TDS Price
TDS's price per share closed at $18.38 yesterday. A year ago their price was $32.18. Thus, in the past year, their market price dropped $13.80 or just under 43%.
Assuming TDS's stock trades in the range of $10 to $30 this next year, its recent $18.38 price might rise by $6.62 to reach $25.00 by March 18, 2021, assuming upward price momentum continues.
TDS Dividends
TDS's latest declared quarterly dividend was $0.17 payable March 31. That $0.17 Q dividend results in an annual payout of $0.68 per share to yield 3.7% at yesterday's $18.38 share price.
TDS Gains?
Adding the $0.68 annual estimated dividend to my $6.62 estimate of a Telephone and Data Systems Inc price upside shows a $7.30 potential gross gain, per share, which will be reduced by any costs to trade those shares.
Put a little under $1,000.00 today invested in TDS at its recent $18.38 price, would buy 54 shares of TDS.
A $10 broker fee paid half at purchase and half at sale could cost us $0.19 per share.
Subtract that $0.19 brokerage cost from my estimated $7.30 gross gain per share results in a net gain of $7.11 X 54 shares = $383.94 or a 38.4% net gain on a $987.12 investment.
Therefore, Telephone and Data Systems Inc, whose trading ticker symbol is TDS shows a possible 38.4% net gain including a 3.7% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if Telephone and Data Systems Inc, is worth your time and money.
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