On Tuesday, Telephone and Data Systems Inc. (NYSE:TDS) shares edged lower by more than 2% despite declaring a quarterly dividend. The company announced a dividend per share of $0.175 on Monday in line with previous payments, reflecting a forward dividend yield of 3.71%. However, Tuesday’s decline pushed the forward annual yield higher to 2.88%
The dividend is payable on the 30th of December to shareholders of record as of the 15th of December. The stock goes ex-dividend on the 14th of December. The US telecommunications company’s shares have plummeted by more than 30% since the 11th of June for a net year-to-date decline of about 3.79%.
Is it an opportunity to buy?
The decline has pushed the company’s valuation to a trailing 12-month P/E ratio of 17.56, thus making it a compelling option for value investors.
In addition, analysts Telephone and Data Systems earnings per share to increase by 88.40% this year before rising by a further 13.66% next year.
Therefore, long-term growth investors could also find it as an exciting option to add to their portfolios.
Source – TradingView
Technically, Telephone and Data Systems shares seem to be trading within a descending channel formation in the intraday chart. As a result, the stock has plunged closer to the oversold conditions of the 14-day RSI.
Therefore, investors could target potential rebounds at about $18.75, or higher at $19.50, while $17.40 and $16.72 are crucial support zones.
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