American Tower Corporation, a leading provider of wireless communication infrastructure, has recently experienced a decline in its stock price. Since reaching its peak in 2022, the company has lost over 30% of its value.
This downturn has been attributed to several factors, including rising interest rates and concerns over potential consolidation in the telecommunications industry. Despite these challenges, some investors see this decline as an opportunity to buy American Tower shares at a discounted price.
With a dividend yield of 3%, the highest in the past decade, the company’s stock has become an attractive option for income-seeking investors. Furthermore, American Tower’s strong market position and long-term growth potential in the rapidly expanding wireless communications sector make it a promising investment opportunity.
American Tower Reports Solid Q4 and Full-Year Results
American Tower recently announced its Q4 and full-year results, which have shown a strong performance for the company. Total revenue for the year grew by 10.6%, while funds from operations (FFO) increased by 5.6%. These results have been attributed to the company’s successful acquisitions in 2021 and growing data center business.
Despite concerns over rising interest rates, which have affected the entire telecommunications industry, American Tower has managed to maintain its strong position in the market. The company’s data center business has been a key factor in offsetting the losses caused by high-interest rates.
American Tower Expects Continued Growth and Healthy Dividend Growth
Despite the recent challenges American Tower faces, the company remains confident in its ability to continue delivering growth and healthy dividend growth to its shareholders. According to the company’s CFO, American Tower expects to deliver over $3 billion in returns in 2023, subject to board approval.
This number represents a 10% year-over-year growth rate per share, a significant increase following the 13% dividend growth the company achieved in 2022. This positive outlook is supported by American Tower’s strong market position and its continued investments in its data center business.
As a result, as the demand for wireless communication infrastructure continues to grow, the company is well-positioned to capitalize on this trend and deliver long-term value to its shareholders.
Furthermore, American Tower’s commitment to sustainable practices and environmental, social, and governance (ESG) initiatives has helped to strengthen its reputation as a responsible and trustworthy company. This commitment is expected to help the company attract and retain investors increasingly focused on ESG considerations.
All in All
Despite the challenges faced by American Tower in recent times, the company remains well-positioned for growth and is expected to continue delivering healthy dividend growth in the coming years.
With a strong market position, a growing data center business, and a commitment to sustainable practices, American Tower is a promising investment opportunity for investors looking for long-term value.