Telephone and Data SystemsTDS +3.25%64 Dividend Payout Ratio is 0.29 as of Mar. 2026, which is 52% below its 10-year median of 0.60. GuruFocus rates TDS with a GF Score™ of 64/100 and a GF Value™ of $32.81 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 191 Telecommunication Services companies, Telephone and Data Systems ranks better than 90.05% on this metric.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Telephone and Data Systems's Dividend Payout Ratio for the
months ended in Mar. 2026 was 0.29.
The historical rank and industry rank for Telephone and Data Systems's Dividend Payout Ratio or its related term are showing as below:
TDS'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.16 Med: 0.6 Max: 5.5
Current: 0.16
During the past 13 years, the highest Dividend Payout Ratio of Telephone and Data Systems was 5.50. The lowest was 0.16. And the median was 0.60.
TDS's Dividend Payout Ratio is ranked better than 90.05% of 191
companies
in the Telecommunication Services industry
Industry Median: 0.53
vs TDS: 0.16
During the past 13 years, the highest Trailing Annual Dividend Yield of Telephone and Data Systems was 10.77%. The lowest was 0.34%. And the median was 2.55%.
During the past 3 years, the average Dividends Per Share Growth Rate was -39.40% per year.
During the past 5 years, the average Dividends Per Share Growth Rate was -24.10% per year.
During the past 10 years, the average Dividends Per Share Growth Rate was -7.10% per year.
During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Telephone and Data Systems was 16.30% per year. The lowest was -39.40% per year. And the median was 5.40% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
Telephone and Data Systems (NYSE:TDS) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
Telephone and Data Systems Dividend Payout Ratio Related Terms
Telephone and Data Systems Dividend Payout Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Telephone and Data Systems Dividend Payout Ratio Chart
TDS vs AD, LBTYA, LBRDA: Dividend Payout Ratio Comparison
For the Telecom Services subindustry, Telephone and Data Systems's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Telephone and Data Systems Dividend Payout Ratio vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telephone and Data Systems's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where Telephone and Data Systems's Dividend Payout Ratio falls into.
Telephone and Data Systems Dividend Payout Ratio Calculation
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
Telephone and Data Systems's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Telephone and Data Systems (TDS) has a Dividend Payout Ratio of 0.29 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Telephone and Data Systems and its competitors. This is 52% below median its historical median of 0.60. Over the past decade, Telephone and Data Systems' Dividend Payout Ratio has ranged from 0.16 to 5.50. According to the industry distribution chart, Telephone and Data Systems ranks #19 out of 191 companies in the Telecommunication Services industry, placing it in the top 9.9%.
Is Telephone and Data Systems' Dividend Payout Ratio too high?
Telephone and Data Systems' current Dividend Payout Ratio of 0.29 is 52% below median its 10-year median of 0.60. Over the past 10 years, this metric has ranged from a low of 0.16 to a high of 5.50. The Telecommunication Services industry median Dividend Payout Ratio is 0.53. Telephone and Data Systems' value of 0.29 is 45.3% below this industry median. Based on the distribution chart, Telephone and Data Systems ranks #19 out of 191 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Telephone and Data Systems has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telephone and Data Systems' Dividend Payout Ratio compare to AD and LBTYA?
According to the Telecommunication Services industry distribution chart, Telephone and Data Systems ranks #19 out of 191 companies for Dividend Payout Ratio. This places Telephone and Data Systems in the top 10% of its industry — outperforming the majority of peers. The industry median Dividend Payout Ratio is 0.53. Telephone and Data Systems' value of 0.29 is 45.3% below this benchmark. Historically, Telephone and Data Systems' own Dividend Payout Ratio has ranged from 0.16 to 5.50 over the past decade. While the company's 10-year median is 0.60 vs. the industry median of 0.53, Telephone and Data Systems has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Telecommunication Services company?
The median Dividend Payout Ratio among Telecommunication Services companies is 0.53, based on 191 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telephone and Data Systems's current Dividend Payout Ratio of 0.29 is 45.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Telephone and Data Systems and its competitors. For the Telecommunication Services industry, the median Dividend Payout Ratio is 0.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telephone and Data Systems's current Dividend Payout Ratio is 0.29, which is 52% below median its own 10-year median of 0.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telephone and Data Systems stock overvalued right now?
Based on GuruFocus' analysis, Telephone and Data Systems (TDS) is currently considered Modestly Overvalued. The stock's GF Value™ is $32.81, compared to a current price of $38.45 — trading 17.2% above its estimated fair value. The current Dividend Payout Ratio is 0.29, which is 52% below median its 10-year median of 0.60 and 45.3% below the Telecommunication Services industry median of 0.53. Telephone and Data Systems' overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Telephone and Data Systems (TDS), the current Dividend Payout Ratio is 0.29 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Telephone and Data Systems (TDS) Overvalued in 2026?
Based on GuruFocus' analysis, Telephone and Data Systems stock appears to be overvalued.
The current stock price of $38.45 is trading 17.2% above its estimated GF Value™ of $32.81.
GuruFocus considers Telephone and Data Systems to be Modestly Overvalued.
Key valuation signals for TDS:
Dividend Payout Ratio: 0.29 (52% below median its 10-year median of 0.60)
GF Value™: $32.81 vs. price of $38.45 (17.2% above fair value)
Industry Position: 45.3% below the Telecommunication Services median (#19 of 191)
No single metric tells the full story. See the TDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telephone and Data Systems Inc is a diversified telecommunications operator that provides communications services to customers through broadband, video, voice, and wireless connections. The company has two reportable segments: TDS Telecom and Array. The majority of its revenue is generated from the TDS Telecom segment, which generates revenue by providing broadband, video, voice, and wireless services. The Array segment generates its revenue mainly by leasing tower space on Array-owned towers to customers.
64GF Score
Get the complete analysis for TDS
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