This Top Dividend Stock Just Boosted Its Guidance
American Tower (NYSE: AMT), a real estate investment trust (REIT) that owns telecom towers, communications sites, and data centers around the world, is about as stable as it gets. The company leases space on its towers to wireless network operators, signing long-term, non-cancellable leases. As long as mobile data usage continues to rise and wireless carriers continue to invest in their networks, American Tower should see solid revenue and profit growth over the long run.
In the short run, American Tower is somewhat sensitive to economic conditions and the investment cycles of its customers. In tough times, wireless carriers can pull back on capital spending. And as carriers wrap up the capital-intensive process of building out 5G wireless networks, American Tower's growth could slow in the U.S.
These challenges have been part of the reason for American Tower's poor stock performance this year. Prior to the company's third-quarter report, American Tower stock was down nearly 24% since the start of 2023. A strong earnings report on Thursday flipped the script, sending the stock soaring and erasing a portion of those losses. American Tower's results and guidance should help quell any concerns investors had about the stock.
Source Fool.com
