Telephone And Data Systems: Preferreds Remain The Best Income Play Post Deleveraging

Labutes IR4.34K FollowersFollow5ShareSavePlay(9min)CommentsSummaryTelephone and Data Systems, Inc. has significantly deleveraged by monetizing mobile assets, notably through US Cellular and spectrum sales.TDS.PR.U Preferred shares, yielding close to 8%, remain the most attractive income play versus the common stock’s 0.35% yield.With net debt projected below $600 million by Q1 2026 and stable wireline/tower operations, TDS boasts a strong balance sheet and financial flexibility.Further spectrum sales and fiber network expansion underpin modest growth, while preferred shares offer a safer, high-yielding option for income investors.

Sean Anthony Eddy/E+ via Getty Images As I’ve covered in the past, I saw Telephone and Data Systems, Inc. (TDS) Preferred Shares (TDS.PR.U) as the most attractive way for income investors to play the TDSThis article was written byLabutes IR4.34K FollowersFollowLabutes IR is a Fund Manager/Analyst specialized in the financial sector, with more than 18 years of experience in the financial markets. I have worked at several type of institutions in the industry, always at the buy side and related to portfolio management. Associated with the existing author The Outsider.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.