American Tower Corporation (AMT) will raise its quarterly distribution by another 3.6 percent to $1.14 per share in Q3 of 2020. This follows a 1.9 percent hike to $1.10 per share announced in the second quarter of 2020 and marks the third increase this year by the communications REIT, bringing the total increase YTD to 12.9 percent. American Tower announced four distribution hikes in 2019 for a total increase of 20.2 percent.
The next distribution is payable on July 10, 2020 to stockholders of record at the close of business on June 19, 2020. A new annualized rate of $4.56 per share yields 1.8% at a stock price of $249.79.
American Tower, one of the largest global REITs, currently has a portfolio of approximately 181,000 communications sites. The company typically announces a dividend hike every quarter, with double digit dividend increases announced every year since a dividend was initiated in 2012.
|American Tower Corporation (AMT)|
|Stock price (Sept 11)||$249.79|
|Market Cap||$110.8 billion|
|Annual dividend||$2.02 billion|
|Dividend 10 yr CAGR||N/A|
Currently the company pays an estimated $2.02 billion in dividends to shareholders annually. This compares to a market cap of $110.8 billion for the company. The average dividend hike in the last five years is 18.4 percent annually for American Tower. This does not yet include a possible new increase in the fourth quarter. If we exclude 2020 the dividend was hiked by an average of 21.6 percent the last five years through 2019.
American Tower Corporation is one of the largest global Real Estate Investment Trusts (REITs) and a independent owner, operator and developer of multitenant communications real estate. The company's primary business is the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a number of other industries. In addition, AMT offers tower-related services in the United States. The company's communications real estate portfolio includes over sites in the United States, Asia, Europe, Middle East and Africa (EMEA) and Latin America. American Tower Corporation was originally created as a subsidiary of American Radio Systems Corporation in 1995 and was spun off into a free-standing public company in 1998.