- Low interest rates have allowed Telephone and Data Systems and subsidiary US Cellular to cheaply increase Capex for wireless infrastructure, such as cell towers and 5G capabilities.
- US Cellular currently has a low valuation, providing a good entry point for investors. Potential catalysts for rising share prices are a return of revenue growth, a spin-off or buy-out.
- Investing through US Cellular common shares is not recommended. These offer no dividend, so an investor is not "paid to wait" for a return.
- US Cellular baby bonds and Telephone and Data Systems preferred shares offer a stable yield. These are low-risk but have limited capital gains potential.
- The recommended way to invest is to buy shares of Telephone and Data Systems, the parent company. These shares combine an attractive and growing dividend yield with capital gains potential.
For further details see:
Buy Telephone and Data Systems For Dividends