American Tower (AMT)

It is quite expensive at 50 times earnings. It is a cell tower story that is growing in the US modestly and a lot more internationally. They view a tower as needing as many different tenants as possible. They want to increase acquired towers from 1.5 tenants to over two, where they normally have them.

(Market Call Minute.) In the REIT camp, and a high growth company. Looks quite attractive.

They sell telephone towers, mostly in the US, but globally as well. The company is growing quite nicely. Cash flow growth is at 15%+ in the next few years, and that will drive very solid dividend growth. Very low risk because it is long-term contracts. There is nice structural growth in the industry because some countries are moving from 2G to 3G, etc. That drives more demand for space on their towers.

(Market Call Minute.) They lease their towers back to telecommunication companies under long-term contracts. Have some global exposure. A great way to get a pretty low, but stable dividend.

(A Top Pick Jan 26/15. Down 8.92%.) A real estate investment trust that owns cell towers globally. They lease space to mobile phone operators to put their gear on towers. Have had very, very good cash flow growth. REITs has been a bit of a tougher space over the last year. Not sure he would Buy, but would keep it on the list to buy when the market starts to turn around.

(Top Pick Oct 9/14, Down 6%) They are a REIT but own cellular towers. He moved to tech and consumer.

We all love to hate the towers that are out there, but this company owns about 70,000 of them, mostly in the US. They just picked up another 4,000 international towers. Earnings were up about 13% last quarter. They secured another $649 million in acquisitions. There is a consolidation going on in the industry and this company leads the way. The dividend is only 1.89%, so he is looking at it for capital gain. The dividend did increase 29% last quarter and the company has targeted a 20% dividend growth going forward.

A great house in a difficult neighbourhood. They are not terribly economically sensitive. It is growing its dividend nicely, but is in the REIT sector and gets impacted by the negative view of REITs. Look at big cap technology stocks such as MSFC-O. Healthcare is another sector to go to, as well as financials.

This is a REIT that owns cell towers. About 65% of their revenue comes from North America, so it is fairly domestically focused, although they do have Latin America, India and Germany. It costs them almost nothing to add new capacity. There is very little in the way of capital investment in this business. You can continue to see very strong dividend growth. Yield of 1.49%.

Is actually a REIT. 65,000 towers around the world. Great balance sheet and great management. They are always profitable.

This has been a real success. They own cell towers globally, with about 67% in the US. A couple of years ago they converted into a REIT. This is like an apartment building where you just keep adding floors to it. As the service providers continue to add equipment as data use goes up, they just get more and more revenue. A great company. Thinks we will continue to see more dividend growth. They have a positive runway going forward. Earnings this year should be up 22% and 15%-16% after that. They plan to spend less money over the next couple of years, so will be able to grow their payout substantially and more rapidly.

Performed particularly well. They rent out space on towers. They have great customers and no bad debts. They keep getting demands for more bandwidth. Raised dividend every quarter. Almost no cap-X. Dividend should increase every quarter.

This company owns cell towers around the world. In effect, it is a REIT that owns real estate which contains cell towers. Their tenants are the phone companies that put their gear up on the tower to transmit and receive. There is a boom in data use. As that continues, more equipment has to go up on these towers. The average tower has 2.5 tenants and could go to 5 tenants over time. When they come with new generations of gear, they don’t take the old gear down, because people still have some old equipment. He likes this as a dividend growth story.

Very, very simple business. Just grabbing revenue in. The only thing he would be slightly worried about is if interest rates start to move higher. Most people will own this for the potential for yield. This is considered a REIT, so if it is part of that area, this is one that will be sold off if interest rates increase.

Looking at this against the REIT complex, it is very steady, but has strong dividend growth. It broke out of an 18 month base of $85. Had actually considered using this as a Top Pick. This business has towers, and the towers have wireless companies as tenants. When you go from 3G to 4G technology, you don’t take down the 3G stuff, you just add more equipment to the tower. Will probably double its cash flow in the next 5 years. Dividend will grow very quickly. This is good for an investor who is looking for a little bit of yield and some dividend growth.