12/10/2023 0 Comments Amt reit![]() We have delivered 9% compound annual and dividend per share growth since we established our 7% to 8% dividend per share growth target in 2017. "So to wrap up, we are excited about the strength of our business and our ability to execute on our strategy to deliver the highest risk-adjusted returns for our shareholders by growing our dividend over the long-term and investing in assets that will help drive future growth. The CEO recently explained in their conference call that in just 2 years, their growth should accelerate back to where it used to be: and as it returns to faster growth, the stock will likely rerate a lot higher, providing a clear path to upside. It is a headwind for the next few years and as a result, the growth will be slower than that of AMT in the near term.īut the flip side of this is that CCI is now priced at a materially lower valuation. T-Mobile ( TMUS) bought out Sprint and this will negatively affect CCI as it will lose some leases with Sprint when they expire. Reason #2 - Stronger catalystĬCI is discounted today and priced at such a high yield because its growth has recently slowed down. In fact, CCI is probably the highest-yielding blue-chip REIT in today's market. With a 5% dividend yield, CCI does not need to grow by much to reach double-digit total returns and you get paid to wait. We could be facing a lost decade and I want to earn a good yield to be less dependent on what the market will do next. There is of course a reason why CCI dropped so much more (see reason #2).īut regardless of that, I think that the higher yield is an advantage of CCI. Typically, the difference in yield between these two REITs is smaller because they are fairly similar, but CCI has recently dropped a lot more than AMT and it has caused its yield to expand: Today, CCI is priced at a near 5% dividend yield. I am bullish on both and I am almost indifferent between the two, but I would slightly favor CCI because of three key reasons: Reason #1 - Materially higher yield Today, we think that both REITs remain attractive purchases, but which one is the best? The returns are high and consistent, and they have been able to earn a large spread over their cost of capital, allowing them to grow at a rapid pace. They invest in cell towers and this segment of the real estate market has been exceptionally rewarding over the past decades. Here is how AMT has performed relative to the S&P 500 ( SPY):Īnd here is CCI's performance relative to the S&P 500: ![]() ![]() They have managed to massively outperform the market all while growing their dividend year after year, even through the great financial crisis, the pandemic, and other crises: American Tower ( AMT) and Crown Castle ( CCI) are two of the best-performing REITs of all time.
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