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

Telephone and Data Systems, Inc. (NYSE:TDS) announced a quarterly dividend on Thursday, August 8th, RTT News reports. Shareholders of record on Monday, September 16th will be paid a dividend of 0.04 per share by the Wireless communications provider on Monday, September 30th. This represents a $0.16 dividend on an annualized basis and a yield of 0.68%. The ex-dividend date of this dividend is Monday, September 16th.

Telephone and Data Systems has increased its dividend by an average of 2.9% per year over the last three years. Telephone and Data Systems has a dividend payout ratio of -72.7% 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 ($0.13) 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 -123.1%.

Telephone and Data Systems Stock Performance

NYSE TDS opened at $23.55 on Friday. The company has a quick ratio of 1.37, a current ratio of 1.51 and a debt-to-equity ratio of 0.84. Telephone and Data Systems has a fifty-two week low of $13.69 and a fifty-two week high of $24.92. The business has a fifty day moving average of $21.57 and a 200-day moving average of $18.98. The stock has a market cap of $2.66 billion, a price-to-earnings ratio of -4.84 and a beta of 0.81.

Telephone and Data Systems (NYSE:TDS) last released its quarterly earnings results on Friday, August 2nd. The Wireless communications provider reported ($0.13) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.13). The company had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.24 billion. Telephone and Data Systems had a negative net margin of 9.31% and a positive return on equity of 0.73%. The firm’s revenue for the quarter was down 2.3% compared to the same quarter last year. During the same period last year, the company earned ($0.17) EPS. As a group, analysts predict that Telephone and Data Systems will post -0.43 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Separately, JPMorgan Chase & Co. reduced their price target on Telephone and Data Systems from $36.00 to $34.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 29th.

About Telephone and Data Systems

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.