Key Highlights

• TDS's $0.04 quarterly Dividend trades with a September 15, 2026 record date, payable September 30, yielding approximately 0.46%.

• TDS withdrew its proposal to acquire the roughly 18% of Array Digital Infrastructure it doesn't already own, citing an inability to agree on consideration and value.

• Second-quarter Net Income attributable to TDS common shareholders was $260.6 million, or $2.24 per diluted share, driven primarily by spectrum monetization gains.

• TDS Telecom raised its 2026 marketable fiber address target to 250,000-300,000 and increased Capital Expenditure guidance to $625-$675 million.

TDS's (NYSE:TDS) $0.04 quarterly dividend trades with a September 15 Record Date and September 30 payment date. Net income of $260.6 million was primarily driven by spectrum monetization gains rather than recurring telecom profitability, while TDS Telecom's residential fiber Revenue rose 13% even as overall service revenue declined 6%.

Dividend Program and Shareholder Returns

TDS declared a $0.04 per share quarterly dividend on Common Shares and Series A Common Shares, payable September 30 to shareholders of record September 15. TDS's dividend has held at this modest level as the company directs capital primarily toward fiber buildout and, following the Withdrawal of its Array Acquisition bid, the resumption of share repurchases, with approximately $523.9 million remaining under its buyback authorizations; the company notes future dividends could be affected by reinvestment opportunities and ongoing Liquidity needs.

About the Company

Telephone and Data Systems is a diversified communications company built around TDS Telecom, which provides broadband and fiber services in local and rural markets, and Array Digital Infrastructure, which owns and operates shared wireless tower infrastructure.

Financial Performance Behind the Payout

TDS reported second-quarter total operating revenues from continuing operations of $309.3 million, up from $298.5 million a year earlier. Net income attributable to TDS common shareholders was $260.6 million, or $2.24 per diluted share, compared with a $6.0 million loss and $0.05 loss per share a year earlier, primarily reflecting gains associated with strategic asset and spectrum transactions. TDS Telecom delivered approximately 66,000 marketable fiber service addresses and added 15,100 residential fiber connections, with residential fiber revenue up 13%, even as overall service revenue declined 6%.

Array Bid Withdrawal

TDS announced on September 1 that it is no longer pursuing full ownership of Array, after failing to reach agreement on consideration and value. TDS will retain its approximately 82% ownership stake and intends to recommence its share-repurchase program, with approximately $523.9 million remaining under its authorizations.

Outlook

Fiber subscriber growth and churn are the metrics to watch as capital expenditure guidance rises to $625-$675 million. The pace of resumed share repurchases, against the $523.9 million remaining authorization, is the near-term capital-allocation signal following the withdrawn Array bid.