Collect A Near 4% Dividend Yield From Cell Towers

"Dividend Power From Cell Towers"

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American Tower Corporation (AMT) is one of three U.S. publicly traded cell tower REITs. The company owns and operates wireless communication sites (towers) in all 50 states.

These include 42,000 towers and 4,600+ rooftop sites, leased to telecom companies like AT&T (T), T-Mobile US (TMUS), and Verizon (VZ).

Current Price: $179.57

Key Earnings Highlights 🔑

• AFFO: $2.78 (beat by $0.32)

• Revenue: $2.72B (beat by $60M)

• AFFO/share growth: +5.3% YoY

• Revenue growth: +8% YoY

• Raised 2025 AFFO guidance: $10.60–$10.72

Growth was driven by strong leasing, expanding data center demand, and continued tailwinds from AI.

Mobile Data Continues Exploding 📱

Mobile data usage grew 35% last year for the third year in a row, driven by more devices and higher usage per device.

Management expects:

• Mobile data consumption to double every 2–3 years

• Network capacity needs to double over the next 5 years

• Buildout of 2,150 new towers tied to upcoming data-center CAPEX

AMT’s partnership with AST SpaceMobile further positions them for satellite-to-cell growth.

Strong Financial Position 🪙

• Leverage: 4.9x (improved from 5.2x)

• Liquidity: $10.7B

• Debt: 94% fixed-rate

• Buybacks: $28M repurchased, $2B still authorized

Nearly 4% Dividend Yield 💰

With an estimated $6.83 annual dividend, AMT’s AFFO payout ratio is only ~64%. And is one of the more secure dividends in the REIT space.

Valuation Reset? 📈

Many tower REITs seem to have re-rated since 2020. AMT included:

• Historical P/AFFO: ~23x

• Current forward multiple: ~16.9x

• Sector underperformance: past 1, 3, and 5 years

If AMT trades in the 17x–20x range, fair value sits near $200 (~11% upside).

AEW Capital’s (one of the world’s largest real estate investment advisors) recent stake adds a small but notable institutional vote of confidence.

Bottom Line ✅

The stock is likely to trade rangebound for the near to medium term and any cracks in the economy could reduce M&A activity. And even though American Tower’s growth has cooled from its pre-2020 pace, but the long-term story remains solid:

• Consistent AFFO growth

• Rising mobile data and AI demand

• Strong balance sheet

• Nearly 4% dividend yield

• Attractive valuation vs. history

For income-focused investors, American Tower remains a reliable core REIT holding long term.

Happy Investing!

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This is not financial advice. This is for educational purposes only. Please do your own due diligence.

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