Telephone And Data Systems Is A Reliable US Telco

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.

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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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