This REIT beat earnings and revenue projections for its second quarter. The stock is a two-for-one, with both growth and income.
American Tower Corporation (AMT)
from Blue Chip Growth
American Tower Corporation (AMT) is a real estate investment trust (REIT) that owns and leases wireless and broadcast communications real estate around the globe. REITs tend to be illiquid—especially those with very high dividend yields. AMT is a special case. This is an extra-safe investment that combines solid income with robust growth. American Tower is a cash rich company that has a history of steadily increasing it dividends. AMT currently pays a 1.4% dividend yield.
But what really has me excited about this company is its promise as a growth stock. Through its subsidiaries, the company leases antenna space on multi-tenant communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities. The company currently owns and operates 69,000 wireless towers, broadcast towers and DAS networks. So American Tower Corp. is a direct beneficiary of the smartphone boom, and the resulting spike in demand for LTE antennas.
Naturally, this translates into strong sales and earnings growth. For the current quarter, the analyst community expects 28.1% annual sales growth and 26.7% earnings growth. For FY 2014, the consensus estimate is for 22.2% sales growth and 63% earnings growth. This is while the industry as a whole is expected to see 2014 EPS fall 9% over 2013. AMT is a great Conservative stock with the best of both worlds—growth and value—and I recommend it as a buy up to $105 per share.
Louis Navellier, Blue Chip Growth, www.bluechipgrowth.com, 800-718-8289, September 2014