American Tower: A Better Way To Invest In The Telecommunications Sector


  • Shares of American Tower have had a rough 2022 and are down 25% YTD.
  • With shares at a price/FFO of 21.4x, shares currently trade below the average multiple from the last decade.
  • The company recently announced a 6.1% dividend hike, the latest in a long string of quarterly increases. The yield currently sits at 2.9%.
  • Investors looking at the telecommunications sector should consider American Tower or its smaller sibling, Crown Castle, over large companies like AT&T or Verizon.

Telecommunication Tower With Antennas At Sunset

imaginima/iStock via Getty Images

Every once in a while I read articles on AT&T (T) and Verizon (VZ), two large telecommunications giants with cheap valuations and large dividends. I certainly prefer dividend paying stocks, and all else being

AMT Portfolio

AMT Portfolio (

AMT Valuation

Price/FFO (

Disclosure: I/we have a beneficial long position in the shares of AMT, CCI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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