New Report: Telephone And Data Systems (TDS)

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Telephone and Data Systems Inc,  known by the ticker symbol TDS,  is a mid-cap Telecom Services firm, operating in the communication services business sector. This is my second report on TDS for this Viital portfolio.  I last reported on TDS October 20, 2021.

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.

The company sells its products through retail sales, direct and indirect sales, third-party retailers, and independent agents, as well as through e-commerce and tele sales.

The company was incorporated in 1968 and is headquartered in Chicago, Illinois.

TDS Dividends


Three key data points gauge any dividend equity or fund such as Telephone and Data Systems Inc (TDS):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

TDS Price

TDS's price per share was $18.70 as of yesterday's market close. One year ago its price was $19.95. Therefore, TDS's share price fell $1.25 or 6.3% in the past year. 

If TDS's stock trades in the range of $16.00 to $28.00 this next year, its recent $18.70 share price might rise by $6.30 to reach $25.00 by March 8, 2023. My $25 estimate is  $1.38 below the median of one year target estimates from the four analysts who track TDS for brokerages.

Telephone and Data Systems Inc's most recently declared quarterly dividend of $0.18 per share is payable March 31st, to shareholders on record as of March 14th.  The TDS  Annual estimated dividend payout per share of $0.72 yields 3.85% per yesterday's $18.70 closing price. 

TDS has paid variable semi-annual dividend payouts, generally increasing annually, since March, 1989. That stretch will mark 33 years this month.

TDS Returns

Adding the $0.72 annual Telephone and Data Systems Inc forward-looking dividend to its estimated one-year price upside of $6.30 shows a $7.07 potential gross gain, per share, to be reduced by any costs to trade TDS shares.  

At yesterday's $18.70 price per share, a little under $1000 would buy 53 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us  $0.19 per share.

Subtract that maybe $0.19 brokerage cost from my estimated $7.07 gross gain estimate per share results in a net gain of $6.88 X 53 shares = $364.64 for a 36.46% net gain on a $991.10 investment.

So it is that Telephone and Data Systems Inc (TDS) shows a possible 36.46% net gain including a 3.85% forward estimated dividend yield. 

Over the next year at this time our $1000 investment in Telephone and Data Systems Inc (TDS) could generate $38.50 in cash dividends alone. Note that a single share of TDS stock bought at yesterday's single share price of $18.70 is more than 2 times less than the dividend income from our $1000.00 invested. So, by my dogcatcher ideal, now is a good time to pickup Telephone and Data Systems Inc (TDS)  shares. The estimated next-year dividend from $1K invested is 2.059 times more than yesterday's single share price of TDS. Consider yourself alerted. Its a sign!  Now's the time!

All of the estimates above are speculation based on the past history of Telephone and Data Systems Inc (TDS). Only time and money invested in this stock will determine its market value.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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