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Telephone and Data Systems, Inc. (TDS) logo

Telephone and Data Systems, Inc.

S&P 500

TDS/Communication Services · Telecom Services/NYSE

Dividend Yield

0.41%

$0.16 · Annual Dividend

Stock Price$37.24P/E22.9MCap4.4BLast update: Jun 26, 2026 at 06:56

Dividend Safety Rating

57/ 100Caution

TDS's dividend shows some areas that warrant monitoring. Strengths include a 9.4% earnings payout ratio & 31.9% cfo payout ratio. Areas of concern: 1581.6% fcf payout ratio & 1.8x interest coverage.

Based on 15 of 15 metrics

Strengths

  • Earnings Payout Ratio: 9.4%Low earnings payout ratio leaves room to grow the dividend.
  • Net Debt / Total Assets: 7.6%Healthy balance sheet with low net debt.
  • Current Ratio: 3.4xStrong short-term liquidity to meet obligations.

Risks

  • FCF Payout Ratio: 1581.6%Free cash flow is tight relative to the dividend.
  • Operating Margin: -1.2%Operating margin is thin and pressures the dividend.
  • 5-Year Dividend CAGR: -25.1%Dividend growth has been weak or negative.

Payout & Coverage

Caution

Balance Sheet

Very Safe
3.4xVery Safe
23.8Very Safe

Profitability

Caution
6.0%Warning
-1.2%Danger
59.8%Very Safe

Dividend Track Record

Caution
11+ yrsVery Safe
NoneVery Safe
UnstableDanger

About Telephone and Data Systems, Inc.

Telephone and Data Systems, Inc. is a diversified telecommunications company providing essential communications services across the United States to consumers, businesses, and government entities. It operates primarily through three key segments: UScellular Wireless, which delivers wireless telecommunications services including connected Internet of Things (IoT) solutions, software applications for business automation, fleet management, security, and private cellular networks; UScellular Towers, which leases tower space to other wireless carriers; and TDS Telecom, offering broadband, video, voice, and fiber-based services through coaxial, copper, and advanced networks. Headquartered in Chicago, Illinois, and founded in 1968, the company supports retail wireless connections and infrastructure vital to modern connectivity. With approximately 7,900 employees, Telephone and Data Systems, Inc. plays a significant role in the telecommunications sector by bridging traditional telephony with emerging wireless and broadband technologies, contributing to national communication infrastructure while navigating operational challenges through strategic asset management and segment diversification.

Dividend Overview

Dividend Yield

0.41%

Annual Dividend

$0.16

Frequency

Quarterly

Payout Ratio

9.41%

FCF Payout Ratio

1581.56%

52-Week Range

$34.12 - $49.12

Dividend History (2016–2025)

TDS annual dividend per share and yield history

Earnings & Profitability

TDS earnings per share and net profit margin

Key Dates

Last Ex-Dividend Date

June 16, 2026

Next Payment Date

June 30, 2026

Dividend Growth

3-Year Dividend CAGR

-39.43%

5-Year Dividend CAGR

-25.13%

10-Year Dividend CAGR

-11.84%

3-Year Total Growth

-77.78%

5-Year Total Growth

-76.47%

10-Year Total Growth

-71.63%

Income Calculator

TDS Dividend Calculator

Total Investment

$3,724.00

Annual Income

$16.00

Quarterly Income

$4.00

Monthly Income

$1.33

Frequently Asked Questions

What is TDS's current dividend yield?
Telephone and Data Systems, Inc. (TDS) currently has a dividend yield of 0.41%, based on a stock price of $37.24 and an annual dividend of $0.16.
When is TDS's next dividend payment date?
TDS's next ex-dividend date is 2026-06-16 and the next payment date is 2026-06-30. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does TDS pay in dividends per year?
Telephone and Data Systems, Inc. paid $0.16 per share in annual dividends in 2025. The dividends are paid quarterly.
Has TDS been increasing its dividend?
Telephone and Data Systems, Inc. has grown its dividend at a 5-year CAGR of -25.13% and a 10-year CAGR of -11.84%.
Is TDS's dividend safe?
Telephone and Data Systems, Inc. has a payout ratio of 9.41%. Its free cash flow payout ratio is 1581.56%. A payout ratio below 60% is generally considered sustainable.
How is TDS's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates Telephone and Data Systems, Inc.'s dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for communication services companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.