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May 4, 2015

(Update: May buy HRZN on Tuesday:  watch for more information.)

Saturday I was in http://www.fool.com and came across a story about American Tower.  It is pasted below.

I have followed AT off and on for years, but have never owned any stock.  I think AT is now worth considering.

Image result for american tower data transmission

American Tower stock pays a very small dividend but has a very powerful story.  Out of curiosity I checked into their corporate bonds to see if they may be paying a higher yield.  They do have an issue that pays 3.9%.  NOT great but pretty good in today’s market.  I suggest you buy some at the current price of $1080.

The brokers are selling lots of five and ten but if you wait and watch you can get lots of two bonds.  Hold to maturity.

Cusip: 03027XAD2

American Tower (NYSE: AMT  )
Want a smart way to take advantage of growing wireless demand and data transmission? Look no further than antenna tower giant American Tower.

Including the nearly 8,500 antenna towers that American Tower added to its portfolio in 2014 through either acquisitions or construction, the company ended its fiscal 2014 calendar year with more than 75,000 towers throughout the world. Antenna towers have seemingly limitless profit potential as next-generation networking advances allow more data to be wirelessly transmitted across a broadening area of the globe. In other words, it means American Tower is in the driver’s seat when it comes to negotiating pricing. It also means American Tower can lock in its wireless providers for long-term contracts, providing predictable cash flow.

In its fourth-quarter earnings report, American Tower delivered 9% organic growth within the U.S., with a gross margin of a whopping 80%. In international markets, the company boasted organic growth of 12.6% and a gross margin of 85% if you exclude pass-through revenue. Long story short, between its ability to acquire antenna networks — for example, it acquired the leasing rights to more than 11,300 towers from Verizon in March for $5.1 billion — and the rapidly growing demand for wireless data from consumers and enterprises, American Tower has a multidecade growth opportunity on its doorstep. 

Lastly, because American Tower is a real estate investment trust, or REIT, it’s required to pay 90% or more of its profits back to shareholders in order to avoid corporate tax rates. This works out to a current yield of 1.7%. That’s not huge, but the dividend has the potential to move substantially higher over the coming years.


Do not buy any positions mentioned here until you view Current Positions.

  Go To Core Portfolio Click Here.

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