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

Key Points

• Telephone and Data Systems declared a quarterly dividend of $0.04 per share, payable September 30 to shareholders of record on September 15. The dividend represents an annualized payout of $0.16 and a yield of approximately 0.5%.
• The dividend may not be well covered: TDS has reduced its payout by an average of 0.3% annually over three years, while its negative payout ratio and projected 2025 earnings suggest an expected payout ratio of 106.7%.
• TDS shares opened at $34.63, up 1.3%, while the company’s latest quarterly results included adjusted earnings of $2.24 per share—well above estimates—but revenue of $309.28 million fell short of expectations.

Telephone and Data Systems, Inc. (NYSE:TDS - Get Free Report) declared a quarterly dividend on Wednesday, August 19th. Stockholders of record on Tuesday, September 15th will be given a dividend of 0.04 per share by the Wireless communications provider on Wednesday, September 30th. This represents a c) annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Tuesday, September 15th.

Telephone and Data Systems has decreased its dividend payment by an average of 0.3%annually over the last three years. Telephone and Data Systems has a dividend payout ratio of -64.0% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Telephone and Data Systems to earn $0.15 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 106.7%.

Telephone and Data Systems Stock Up 1.3%

Shares of NYSE:TDS opened at $34.63 on Thursday. The firm has a market cap of $3.99 billion, a P/E ratio of 11.54 and a beta of 0.32. The company has a quick ratio of 3.81, a current ratio of 3.82 and a debt-to-equity ratio of 0.15. Telephone and Data Systems has a 12-month low of $31.51 and a 12-month high of $49.12. The business has a fifty day simple moving average of $35.69 and a 200 day simple moving average of $40.85.

Telephone and Data Systems (NYSE:TDS - Get Free Report) last issued its quarterly earnings results on Friday, August 7th. The Wireless communications provider reported $2.24 earnings per share for the quarter, beating the consensus estimate of $0.09 by $2.15. The company had revenue of $309.28 million during the quarter, compared to analysts' expectations of $315.78 million. Telephone and Data Systems had a return on equity of 11.97% and a net margin of 33.20%.The business's quarterly revenue was up 3.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.05) earnings per share. Analysts predict that Telephone and Data Systems will post -0.24 earnings per share for the current year.

Institutional Trading of Telephone and Data Systems

Several institutional investors have recently made changes to their positions in TDS. Captrust Financial Advisors boosted its holdings in Telephone and Data Systems by 3.8% during the fourth quarter. Captrust Financial Advisors now owns 6,026 shares of the Wireless communications provider's stock worth $247,000 after purchasing an additional 220 shares during the last quarter. Salomon & Ludwin LLC boosted its stake in shares of Telephone and Data Systems by 51.3% in the 4th quarter. Salomon & Ludwin LLC now owns 681 shares of the Wireless communications provider's stock worth $28,000 after buying an additional 231 shares during the last quarter. CIBC Asset Management Inc grew its holdings in shares of Telephone and Data Systems by 2.4% in the fourth quarter. CIBC Asset Management Inc now owns 9,804 shares of the Wireless communications provider's stock valued at $402,000 after acquiring an additional 232 shares in the last quarter. Maryland State Retirement & Pension System increased its position in shares of Telephone and Data Systems by 1.6% during the fourth quarter. Maryland State Retirement & Pension System now owns 14,362 shares of the Wireless communications provider's stock valued at $589,000 after acquiring an additional 233 shares during the last quarter. Finally, HighTower Advisors LLC lifted its holdings in Telephone and Data Systems by 4.3% during the fourth quarter. HighTower Advisors LLC now owns 5,866 shares of the Wireless communications provider's stock worth $241,000 after acquiring an additional 240 shares during the period. Institutional investors own 80.00% of the company's stock.

About Telephone and Data Systems

Telephone and Data Systems, Inc NYSE: TDS is a diversified telecommunications company headquartered in Chicago, Illinois. Through its subsidiaries, the company provides a broad array of communications services, including wireless voice and data, wireline broadband and voice, cable television, and managed IT and cloud solutions. Its two primary operating units—TDS Telecom and U.S. Cellular—serve residential, business and wholesale customers across the United States.

TDS Telecom focuses on delivering broadband internet, digital voice, video and data communications services in primarily rural and suburban markets.

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