Better Buy: AT&T vs. American Tower
As one of the few 5G providers in the U.S., AT&T (NYSE: T) relies heavily on American Tower (NYSE: AMT). American Tower, which is a real estate investment trust (REIT) that owns about 43,000 properties in the U.S., helps to facilitate AT&T's 5G service. From the stockholder perspective, both companies have long served as dividend stalwarts that have drawn the attention of income investors. Now, the question for investors is: Which stock will likely serve them better?
Let's take a closer look at these two companies and see if we can find the answer.
AT&T stands as one of only three of America's 5G service providers. Unlike Verizon and T-Mobile US, AT&T has significant interests in non-telecom businesses as well, choosing to make some expensive acquisitions in the past decade in media properties like DIRECTV and WarnerMedia. Company management recently has determined that those investments aren't working out and is in the process of spinning off both operations in some form, including a $43 billion megamerger announced this month with Discovery Communications to form a new publicly traded still-to-be-named spinoff company owned 71% by AT&T shareholders and 29% by Discovery shareholders.
Source Fool.com
