3 Tower REITs With Yields Up to 5.8%
Tower real estate investment trusts (REITs) own and operate cell towers or communication towers. These towers are critical components of wireless communication infrastructure, providing space for antennas and equipment used by mobile network operators.
Tower REITs typically generate income by leasing space on their towers to wireless carriers, telecommunications companies, and other communication service providers. The demand for tower space has increased with the growth of mobile communications, 5G technology, and the expansion of wireless networks.
Here are three tower REITs with yields up to 5.8%.
American Tower Corporation
American Tower (NYSE:AMT) is the world's largest owner and operator of mutlitenant communications real estate. Its portfolio currently consists of nearly 225,000 communications sites across the globe.
American Tower currently pays a quarterly dividend of $1.70 per share, equating to $6.80 per share annually, which gives it a yield of about 3.3% at today's levels. It has also raised its annual dividend every year since converting to a REIT in 2012, making it both a high-yield and dividend-growth stock.
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Crown Castle Inc.
Crown Castle (NYSE:CCI) is one of the nation's leading providers of share communications infrastructure with more than 40,000 cell towers, approximately 115,000 small cell nodes, and approximately 85,000 route miles of fiber across every major U.S. market.
Crown Castle currently pays a quarterly dividend of $1.565 per share, equating to $6.26 per share annually, which gives it a yield of about 5.8% today. Like American Tower, Crown Castle has raised its annual dividend every year since it converted to a REIT in 2014, making it both a high-yield and dividend-growth stock.
SBA Communications Corporation
SBA Communications (NASDAQ:SBAC) is a leading owner and operator of wireless communications infrastructure with a portfolio of more than 39,000 communications sites across 16 markets in the Americas, Africa, and the Phillipines.
SBA currently pays a quarterly dividend of $0.85 per share, equating to $3.40 per share annually, which gives it a yield of about 1.5% at today's levels. While its yield is not as flashy as American Tower or Crown Castle, it's important to note that SBA has raised its annual dividend for four consecutive years, so it's an up-and-comer in the dividend-growth department.
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