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An Update On American Tower

Mar. 07, 2018 2:44 PM ETAmerican Tower Corporation (AMT)10 Comments
Dividend Stream profile picture
Dividend Stream


  • American Tower shares haven't done much since my last recommendation, but dividends have risen.
  • American Tower is at the point in its life cycle where it's generating substantial excess cash flow and dividends should grow markedly going forward.
  • American Tower is priced reasonably and can be bought here.

American Tower Corporation (NYSE:AMT) is a great investment if you're looking for dividend growth. This company is behind the very strong trend of growing mobile data traffic, in both the US and the world, particularly from mobile phones but also increasingly from "the Internet of things." Think of American Tower as the builder of the infrastructure needed to carry mobile data:

Courtesy of AT&T Investor Relations.

This chart (from AT&T) is admittedly a bit dated, but it gives you the idea of where mobile data traffic has come from. While the next 10 years certainly won't see the exponential growth we saw over the last 10, American Tower expects 30% compounded annual data growth in the US as part of its "10-year plan."

American Tower is the biggest owner of communications towers in the US and, I believe, the world. It has a massive footprint of over 144,000 "communications sites," around the world, including 40,000 in the US and 58,000 in Asia (much of which, presumably, are in India). American Tower also is a faithful dividend payer, paying a dividend, and raising it, each year since 2012.

I don't often write about American Tower, not at least in "free" articles, due mostly to time constraints. The last "free" article I wrote about American Tower was back in June, where I called it a "buy for the future." At the time shares were at $134.

Courtesy of Yahoo Finance.

If you look purely at the stock price, shares haven't done much of anything since then. There's been some ups and downs, but the share price is pretty much where it was nine months ago. However, American Tower has since raised its dividend from 62 cents per share, per quarter, to 70 cents. That counts for a lot in my opinion. This article updates the one from nine months ago, and takes

If you're interested in American Tower, feel free to follow me here on Seeking Alpha.

However, I write about topics at much more regular intervals in my Marketplace service, Streaming Income. In that service I write about broader themes and provide multiple actionable ideas for income investors, with all articles and updates on a strict monthly or quarterly schedule. I invite you to take a risk-free look..

This article was written by

Dividend Stream profile picture
Dividend Stream is a contributing columnist for Real Money and TheStreet.com. He has been writing for Seeking Alpha since 2012.

Analyst’s Disclosure: I am/we are long AMT. 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.

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