The board of directors of
American Tower Corporation.
) recently announced a 8.3% or 2 cents hike in its quarterly cash
dividend to 26 cents per share, resulting in a current dividend
yield of 1.26%. The increased dividend will be paid on Apr 25,
2013 to shareholders of record, at the close of business on Apr
The company started functioning as a Real Estate Investment
trust (REIT) from Jan 1, 2012, after completing the merger with
its wholly owned subsidiary American Tower REIT Inc., on Dec 31,
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.
The company declared its first dividend of 21 cents per share
on Mar 22, 2012 and paid successive dividends of 22 cents, 23
cents and 24 cents in the next three quarters, hence taking its
annual tally to 90 cents per share, which is nearly 56% of the
total net profit distributed as dividends. However, the company
missed the target for the year 2012 by a huge margin. The company
also maintained its next five-year annual dividend growth target
in the range of 20%
Earlier, in order to qualify as a REIT, American Tower paid a
special dividend of 35 cents per share to its shareholders on Dec
Other Stocks to Consider
American Tower currently has a Zacks Rank #3 (Hold). Other
stocks in the wireless tower industry include
Crown Castle International Corp.
SBA Communication Corp.
). All the 3 stocks currently have a Zacks Rank #3 (Hold) and
never declared any cash dividend to date.
AMER TOWER CORP (AMT): Free Stock Analysis
CROWN CASTLE (CCI): Free Stock Analysis
EQUINIX INC (EQIX): Free Stock Analysis
SBA COMM CORP (SBAC): Free Stock Analysis
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