How American Tower Rewarded Stockholders in 2Q17



AMT’s dividend payouts

American Tower (AMT) has regularly rewarded its stockholders with quarterly dividends and share buybacks. In 2Q17, American Tower distributed cash worth $275 million among its common stockholders and paid preferred stock dividends totaling $27 million.

American Tower raised its quarterly dividend by 3.2% to $0.64 in June 2017. The new dividend amounted to an annualized dividend of $2.56. It was paid on July 14, 2017, to shareholders of record on June 15.

American Tower has successfully hiked its dividend once every year by an average of 23.7% for the past five years, and AMT raised its dividend by 22% in fiscal 2016.

AMT has maintained a dividend yield over the past 12 months of 1.69%, compared with ~1.8% and 2% in 2015 and 2016, respectively. It’s expected to maintain a dividend yield of 2% in fiscal 2017, 2.3% in fiscal 2018, and 3% in fiscal 2019.

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Repurchases could rise

In 2Q17, AMT repurchased more than 0.3 million shares. So far in fiscal 2017, AMT has repurchased 5.2 million shares worth $641 million, and shares worth $470 million still remain to be purchased under its stock repurchase program.

By comparison, close competitors Crown Castle (CCI), Realty Corporation (O), and Simon Property Group (SPG) offer NTM (next-12-month) dividend yields of 3.8%, 4.4%, and 4.2%, respectively. AMT and its peers constitute ~17% of the ProShares Ultra Real Estate ETF (URE).


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