Telephone And Data Systems: Preferred Shares Remain A Good Option For Risk-Averse Income Investors
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Telephone and Data Systems (TDS) is focusing on monetizing assets, including US Cellular and spectrum sales, to reduce risk and strengthen its balance sheet. Preferred shares of TDS are trading below par, offering attractive yields for income investors, with potential for price appreciation and dividends. Strategic asset sales to T-Mobile and Verizon are expected to generate significant cash, reduce leverage, and support fiber network investment.
January 22, 2025 | 10:00 pm
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TDS is selling assets, including US Cellular and spectrum, to T-Mobile and Verizon. This strategy aims to generate cash, reduce leverage, and support fiber network investments. Preferred shares offer attractive yields below par.
TDS's asset sales to major telecom companies like T-Mobile and Verizon are expected to generate significant cash, which will help reduce leverage and support investments in fiber networks. This strategic move is likely to strengthen TDS's financial position, making its preferred shares an attractive option for income investors due to their yield and potential for price appreciation.
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