American Tower

A top REIT. They charge the top US cell phone companies rents to put their equipment on their towers. An excellent long-term buy.

Develops and owns wireless communication and broadcast towers globally. Need for a lot of data is as unavoidable as death and taxes. Data consumption in US is doubling every two years. Good defensive name. Yield is 1.78%. (Analysts’ price target is $222.53)

AMT vs CCI? AMT has been a gift that keeps on giving. In the REIT space, it has great dividend growth. 5G is coming down the pipe and they are well positioned. Tactically, there may be some re-allocation going on that may cause some pull back. CCI is similar and both offer dividend growth.

Infrastructure. They own cell phone towers. They've had a good run over the last 3 years. They penetrate in areas around the world, and a play on cell phone usage. Not a bad stock, but long-term he prefers Brookfield Infrastructure for its geographic diversity.

Almost a REIT for the wireless business in the US -- as they rent space on the towers to large cell providers. However, AMT is a bit expensive with 20 times multiples. 50% of their business is outside the US, so the name is a bit misleading. They are still deploying 4G LTE in the developing markets and now 5G is rolling out.

One of the few names where he is comfortable that they will continue their growth trajectory over 10 years. 5 G is the next area of growth. There is consensus that you have to put your 5 G equipment on the towers.

One of the best ways to play 5G. Low beta, which you want at this point in the cycle. Growth potential. US, Brazil, India. We're doubling our consumption of data every 3 years. Toll booth business. Nice dividend of 1.7%.

The largest owners of cell phone towers in the world. Between 150,000-200,000 cell towers around the world. As we move to 5G technology, new equipment will be required on more towers -- all good for them. Yield 1.68% (Analysts’ price target is $222.67)

A 5G play? AMT-N did run into a technical break point at $235. Fundamentally, it is extremely highly valued -- 60% over valued by his models. There is an acceleration in current stock price move that he attributes to the 5G influence. You are paying for it now as it pays out most of its earnings in a dividend -- $3.68 per share -- that has a high payout ratio. You are speculating at this point. He would not buy here.

It dropped more than the S&P. The trend was up and to the right. This is a good purchase. If we break through $208 then we are headed to $196. Take half your position now.

Down 30% last month! It should be a steady-Eddy story, but the change in interest rates has been negative on this. He likes XLRE-N as it holds 40% in data centres and towers. At the end of the day, apps files and photos all require more data-bytes which will be going through 5G towers. If strong economic rates resume, this will likely get beaten up. He will likely be stopped out of his position.

Owns and operates wireless communications towers globally. Primarily in US, Brazil, and India. Good time to buy this week with the mini-selloff. Lots of runway for growth, as we need the cell phone data. Great long-term, secular growth rate. Yield is 1.73%. (Analysts’ price target is $220.80)

Unsightly towers are put up all across the country and then carriers put equipment on these towers to transmit frequencies. Once the tower is built there is really no more expense to the company. They collect rent from the carriers. As you add them to your tower, your margins skyrocket. 5-G will be the dominant theme over the wireless space but it will be very lumpy. Carriers will have to deploy small cells between towers. He does not expect this to be the dominant theme in the near term.

He prefers another name, Crown Castle, CCI-N, which does the same thing as AMT-N, but trades at a 2-multiple point discount to American Tower. AMT is the bellweather, but CCI benefits from the towers they run but also in small-cell applications, which is like the next generation of 5G. CCI also pays a nice dividend and benefits from lower rates.