About Telephone & Data Systems
Telephone & Data Systems has been expanding data services to their customers. They introduced the Apple iPhone to their customers in November 2013.
Photo courtesy Yutaka Tsutano/flickr.com.
Telephone & Data Systems (TDS) provides wireless and wired communications products and services, including cable, broadband internet access, and voice services, to nearly 6 million customers nationwide. TDS does this through the following majority or wholly owned subsidiaries: U. S. Cellular, TDS Telecom, OneNeck IT Solutions, Baja Broadband, Suttle-Straus, BendBroadband, and Airadigm Communications.
TDS owns 84% of U. S. Cellular, which provides about 80% of TDS’s operating revenues and 65% of TDS’s operating income. U. S. Cellular provides mobile phone services to 4.7 million customers in 23 states. U. S. Cellular trades separately on the New York Stock Exchange under the ticket symbol USM.
TDS Telecom is a wholly owned subsidiary of Telephone & Data Systems that provides high-speed internet, phone and TV services to customers in more than 100 communities. TDS Telecom also manages the operations of TDS subsidiaries OneNeck IT Solutions, Baja Broadband and BendBroadband. TDS Telecom provides about 20% of TDS’s operating revenues and operating revenues.
The remaining subsidiaries provided less than 1% of operating revenues and 18.6% of operating income:
- OneNeck IT Solutions provides IT, cloud and hosting solutions, and IT hardware to mid-market commercial customers.
- Baja Broadband, which was acquired by TDS in August 2013, provides residential and commercial video, high-speed internet, phone and data services to customers in six Southwest states.
- Suttle-Straus provides communications solutions, direct mail and advertising materials to customers in the Wisconsin and Chicago markets.
- BendBroadband provides a range of broadband and fiber connectivity, including TV and telephone services for customers in Central Oregon.
- Airadigm Communications offers mobile phone services to customers in Wisconsin.
The company is a member of the S&P Mid Cap 400 index and S&P’s High Yield Dividend Aristocrats index, and trades under the ticker symbol TDS.
Telephone & Data Systems’ Dividend and Stock Split History
Telephone & Data Systems has increased dividends since 1975 and usually announces dividend increases during the last week of February; the stock goes ex-dividend in mid-March.
TDS has compounded its payout at an average rate of 4.6% over the last 5 years and 4.7% over the last 10 years.
Telephone & Data Systems has split its stock 3 times in the last 30 years. Most recently, TDS split its stock 2-for-1 in May 2005. Prior to that, TDS split its stock 3-for-2 twice within 9 months, in March and December 1988.
TDS’s Direct Purchase and Dividend Reinvestment Plans
Telephone & Data Systems has a dividend reinvestment plan, but not a direct purchase plan for their stock. In order to participate in the dividend reinvestment plan, you must already own 10 shares of TDS stock. (Note: TDS also has a series A of common stock which has more voting rights than the regular common stock; the series A stock effectively controls TDS, but is not publicly traded. The discussion here is in reference to the publicly traded common stock, not the series A common stock.)
The Telephone & Data Systems dividend reinvestment plan is extremely favorable to investors. Once enrolled, you can purchase additional shares directly through the plan (with a $10 minimum purchase) and, when reinvesting dividends you can purchase shares at a 5% discount to the current price. The company picks up all purchase fees associated with purchases through the plan, whether directly or by dividend reinvestment. There is no setup fee for new enrollees in the plan.
The only fees associated with the plan are when you go to sell your shares. When selling shares in the plan, you’ll pay 12 cents per share sold plus a transaction fee of between $15 and $25, depending on the type of sell order you request.
Helpful Links
Telephone & Data Systems’s Investor Relations Website
Current quote and financial summary for Telephone & Data Systems (finviz.com)
Information on the dividend reinvestment plans for TDS
Enrollment form for the TDS’s dividend reinvestment plan