American Tower Corporation (NYSE: AMT ) plans to build records for cell tower deployments this year. However, the price fell in 2020, and the AMT stock’s significant advantages did not erode for a long-term investor.
ATR possesses a valuable asset in the form of an extensive network of communications towers in the United States and a long history of dividend payments. Although the American Tower Corporation’s stock dropped in 2020, service demand for telecom services grew due to self-isolation and increased telecommuting.
A growth rate of 11% was seen in operating income (AFFO), raising it to the highest level in five years. The growth was primarily driven by the rollout of 5G networks and an increase in tower density.
American Tower expects the AFFO to grow by 8.5% in 2021 and intends to build a record number of new sites: 6,500. Furthermore, American Tower is planning on increasing the rents for the towers from 2023 to 2027.
Since the fourth quarter of 2018, American Tower has increased its dividend by $1.01 annually, taking its dividend to $1.21 for the fourth quarter of 2020. The AMT stock raised its annual dividend from $1.81 to $4.53 in five years.
The business of American Tower continues to grow in this way since mobile communications’ popularity is increasing.
The shares of American Tower Corporation (AMT) started trading at $221.86 and reached an intraday high of $225.05. During the Friday trading session, it recorded a low of $221.36. On Friday, the stock’s trading volume was 4.79 million.