After starting its operation as a Real Estate Investment trust
(REIT) from January 1, 2012,
American Tower Corporation
(
AMT
) declared its first dividend of 21 cents per share on March 22,
2012 to be paid on April 25, 2012, to shareholders of record as of
the close of business on April 11, 2012.
The company started functioning as REIT after completing the
merger with its wholly owned subsidiary American Tower REIT Inc.,
on December 31, 2011.
Following the conversion, American Tower will be required to pay
less tax as the company will distribute 90% of its earnings through
dividends every year.
Earlier, the company made a special dividend payment of 35 cents
per share to its shareholders on December 23, 2011, in order to
qualify as a REIT besides receiving favorable approval from the
shareholders of the American Tower business.
We believe that the wireless tower industry will continue to
outperform, primarily on the back of huge demand for mobile data
and video services. Moreover,
Clearwire Corporation
(
CLWR
) and T-Mobile are planning to roll out LTE networks, which we
believe will help the company to extend its customer portfolio,
hence driving top-line growth for the company going forward.
However, American Tower holds a highly leveraged balance sheet
along with huge margin pressure. As the company continues to expand
its network in the emerging nations like India, China and Latin
American region, it will remain highly vulnerable to the exchange
rate risks. We thus maintain our long-term Neutral
recommendation for American Tower Corporation.
Currently, the company has a Zacks #3 Rank, implying a
short-term Hold rating.
Boston, Massachusetts-based American Tower Corporation is a
leading independent operator of wireless communications towers in
the U.S., Brazil, Mexico, India, and Chile. American Tower leases
antenna space on its towers to wireless service providers as well
as to radio and television broadcast companies.
AMER TOWER CORP (
AMT
): Free Stock Analysis Report
CLEARWIRE CORP (
CLWR
): Free Stock Analysis Report
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