As an investor, my investment strategy is to identify and allocate capital to high-quality businesses that provide essential goods and/or services to society at attractive valuations over the long term.
In the current century, few, if
American Tower: A Compelling Long-Term Investment
Summary
- American Tower maintained respective consolidated AFFO/share and FCF payout ratios of 53.4% and 67.7% in 2020, which are both quite sustainable over the long term.
- Despite what was a challenging operating environment for most businesses, American Tower grew its revenues 6.1% in 2020 and its consolidated AFFO/share advanced 7.5% during the year.
- What's more, American Tower anticipates that 2021 will be an even stronger year, with 8.4% consolidated AFFO/share growth.
- Solidifying the case for an investment in American Tower is the fact that I estimate shares of the stock are trading at a 3% discount to fair value.
- Between its 2.1% yield, 8.0-9.0% annual consolidated AFFO/share growth, and 0.3% annual valuation multiple expansion, I believe shares of American Tower are positioned to meet my 10% annual total return requirement over the next decade.
Hi, my name is Kody. Aside from my articles here on Seeking Alpha, I am also a regular contributor to Sure Dividend, The Dividend Kings, and iREIT+Hoya Capital. I have been investing since September 2017 (age 20) and interested in dividend investing since about 2009.Since July 2018, I have ran Kody's Dividends. This is a blog that is documenting my journey towards financial independence using dividend growth investing as the means to transform the dream of financial independence into a reality. It's also the inspiration of my pseudonym here on Seeking Alpha.By God's grace, I owe everything to my blog for introducing me to the Seeking Alpha community as an analyst. That's my story and I hope you enjoy my work examining dividend growth stocks and the occasional growth stock!
Analyst’s Disclosure:I am/we are long T, VZ. 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.