This week I'm seeking a prestigious and long-term dividend-paying stock from the communications services sector. 

That sector has companies that connect us electronically in either of two ways: telecommunications, or pay TV. Some do both. Not this one, it's strictly Telco:

Today I'm reviewing a mid-cap telecom outfit named Telephone and Data Systems Inc. Its trading ticker symbol is TDS.

Telephone and Data Systems Inc. is a diversified telecommunications service company providing telecommunications services to wireless customers and wireline and cable connections in the US.

The company offers cellular services, wireless devices, consumer electronics, and the company provides wireline and cable broadband services; digital television (TV) and digital satellite TV video services; voice services.

Further, it offers a range of information technology (IT) services. Additionally, the company operates retail stores and kiosks. 

The company serves approximately 5.1 million wireless customers and 1.2 million wireline and cable customers. Telephone and Data Systems, Inc. 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 the value of any dividend equity or fund likeTelephone and Data Systems Inc. (TDS): 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

TDS Price

TDS' price per share was $29.58 at yesterday's market close. A year ago its price was $28.08 for a gain of $1.50 per share.  

Assuming TDS's price will trade in the range of $23 to $33 for the next year, perhaps TDS can double the gain and move it's current $29.58 price to $31.08 by early September, 2019. 

TDS Dividends

TDS' most recent quarterly dividend was $0.16 declared August 16th and payable Friday, September 28th. At this most recent pay rate, TDS' annual dividend of $0.64 is yielding 2.2% at yesterday's closing $29.58 price.

Gains For TDS?

Adding the $0.64 declared annual dividend to my $1.50 year over year estimated price gain for TDS makes a $2.14gross annual per share gain, which will be reduced by costs to trade the shares.  

A little over $1,000.00 invested today at the $29.58 recent price buys 34 Telephone and Data Systems Inc. (TDS) shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.29 per share, subtracting that $0.29 brokerage cost from the estimated $2.14 gross gain leaves a net gain of $1.85 X 34 shares = $62.90 or a 6.2% net gain on a $1,005.72 investment.

Therefore, Telephone Data Systems Inc. whose trading ticker symbol is TDSnow shows a possible 6.2% net gain including a 2.2% dividend yield. 

Four brokers cover this stock:

And guess what?

One says "buy" TDS

One says TDS will "outperform" its peers.

One broker says "Hold" your position on TDS.

One says TDS will Underperform peers!

Thus, the analyst consensus recommendation number is 2.5 or "outperform".

The median price target set by those four brokers is $2.42 over my $31.08 price number.

Here I am less optimistic than the Chicago brokers!  

I look at all those Telephone and Data Systems Inc. (TDS) has made money, is making money, and could net a 6.2% net annual gain including a 2.2% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. Actual results remain to be seen. Those results will determine if Telephone and Data Systems Inc. (TDS) is worth your time and money.