Telephone and Data Systems, Inc. Announces Quarterly Dividend of $0.04 (NYSE:TDS)

Key Points

• Telephone and Data Systems, Inc. announced a quarterly dividend of $0.04 per share, with payments scheduled for September 30th to stockholders of record on September 15th.
• The company has a payout ratio of -64.0%, indicating it is relying on its balance sheet to cover dividend payments, as earnings are insufficient to meet its dividend obligations.
• Analysts have mixed ratings for TDS stock, with JPMorgan reducing its price target and Wall Street Zen upgrading the rating from sell to hold.

Telephone and Data Systems, Inc. (NYSE:TDS - Get Free Report) announced a quarterly dividend on Friday, August 8th, RTT News reports. Stockholders of record on Monday, September 15th will be given a dividend of 0.04 per share by the Wireless communications provider on Tuesday, September 30th. This represents a c) annualized dividend and a dividend yield of 0.4%.

Telephone and Data Systems has a payout ratio of -64.0% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Telephone and Data Systems to earn ($0.20) per share next year, which means the company may not be able to cover its $0.16 annual dividend with an expected future payout ratio of -80.0%.

Telephone and Data Systems Trading Up 1.3%

Shares of TDS stock traded up $0.50 during trading on Friday, hitting $38.77. 1,442,021 shares of the stock traded hands, compared to its average volume of 1,449,416. The firm has a market capitalization of $4.42 billion, a P/E ratio of -36.92 and a beta of 0.54. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.74 and a quick ratio of 1.55. The firm's fifty day moving average price is $36.49 and its 200-day moving average price is $36.16. Telephone and Data Systems has a 52-week low of $19.85 and a 52-week high of $42.74.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. Raymond James Financial reissued an "outperform" rating and issued a $49.00 target price (up previously from $47.00) on shares of Telephone and Data Systems in a research report on Friday, July 25th. JPMorgan Chase & Co. dropped their target price on Telephone and Data Systems from $56.00 to $53.00 and set an "overweight" rating on the stock in a report on Wednesday, May 28th. Finally, Wall Street Zen cut shares of Telephone and Data Systems from a "hold" rating to a "sell" rating in a research report on Saturday.

Telephone and Data Systems Company Profile

Telephone and Data Systems, Inc, a telecommunications company, provides communications services in the United States. It operates through two segments: UScellular and TDS Telecom. The company offers wireless solutions to consumers, and business and government customers, including a suite of connected Internet of things (IoT) solutions, and software applications for monitor and control, business automation/operations, communication, fleet and asset management, smart water solutions, private cellular networks and custom, and end-to-end IoT solutions; wireless priority services and quality priority and preemption options; smartphones and other handsets, tablets, wearables, mobile hotspots, fixed wireless home internet, and IoT devices; and accessories, such as cases, screen protectors, chargers, and memory cards, as well as consumer electronics, including audio, home automation and networking products.