Telephone and Data Systems

TDS

Market cap $5.08B

Telecom and Data Systems is now a focused fiber and tower platform post-US Cellular sale, with a clean balance sheet and disciplined capital allocation. TDS Telecom is accelerating fiber builds in underserved Tier-2/3 markets and leveraging FCC E-ACAM subsidies to convert rural copper to high-penetration fiber. Array Digital is transforming into a standalone tower business, with tenancy and margin expansion, and $1.8B in special dividends imminent from spectrum monetization.

Telephone and Data Systems is set to generate $2.2 billion from pending sales of its spectrum assets through 2026. This should support a $500 million share buyback program and further bolster a balance sheet that had net cash of $105 million at the end of its recent third quarter. The Series UU preferreds offer a current yield of 7.76% and are trading at a 15% discount to their liquidation value. These should recover if long-term Treasury rates dip.

Telephone and Data Systems' tickers TDS-U (TDS.PR.U) and TDS-V (TDS.PR.V) have, by far, the highest “qualified dividend” yield of any preferred stock in the market from an investment grade company. TDS carries a huge amount of cash on its balance sheet, many times more than its debt, so the preferred stocks are ultra safe. For U.S. investors, the TDS preferred's high “qualified dividends” generate a very high after-tax yield comparable to a 10.2% bond for those in the higher tax brackets.

Connecticut-based Silver Point Capital sold 1.3 million shares of Telephone and Data Systems in the third quarter. The value of the stake at the end of the quarter was $43.9 million.

Telephone and Data Systems preferred stock offers a 7.9% yield, now safer after major debt reduction and asset sales. TDS's balance sheet has strengthened, with net debt dropping from $6.6 billion to $2.2 billion, supporting dividend safety and share repurchases. Interest rate cuts by the Fed create a favorable environment for TDS preferred shares, though inflation remains a risk to watch.

CHICAGO , Nov. 21, 2025 /PRNewswire/ -- The board of directors of Telephone and Data Systems, Inc. (NYSE: TDS) has declared fourth quarter 2025 dividends on its Common Shares, Series A Common Shares, Series UU Preferred Shares and Series VV Preferred Shares. TDS is paying a quarterly dividend of $0.04 per Common Share and Series A Common Share payable on December 30, 2025, to holders of record on December 15, 2025.

Oaktree acquired nearly 3.7 million shares of TDS in the third quarter for an estimated $144.7 million. The transaction value represents 2.2% of 13F reportable assets under management (AUM) at quarter-end.

TDS' Q3 earnings beat forecasts as fiber expansion and tower rental growth offset revenue declines from divestitures.

The headline numbers for TDS (TDS) give insight into how the company performed in the quarter ended September 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Telephone and Data Systems, Inc. ( TDS ) Q3 2025 Earnings Call November 7, 2025 10:00 AM EST Company Participants John Toomey - VP of Corporate Relations & Treasurer Walter C.D. Carlson - Chairman, President & CEO Vicki Villacrez - Executive VP, CFO & Director Kenneth Dixon - President, CEO & Director Kristina Bothfeld - VP of Finance & CFO Douglas Chambers - Interim CEO, Interim President & Director Conference Call Participants Ric Prentiss - Raymond James & Associates, Inc., Research Division Vikash Harlalka - New Street Research LLP Eric Luebchow - Wells Fargo Securities, LLC, Research Division Sergey Dluzhevskiy - GAMCO Investors, Inc. Presentation Operator Hello, and welcome to the TDS and Array Third Quarter 2025 Operating Results Conference Call.