ATN International Announces Dividend & Share Buyout Hike
ATN International, Inc. ATNI recently announced a 14% year-over-year hike in its quarterly dividend payout. The proposed dividend of 24 cents per share or 96 cents on an annualized basis is payable on Jan 5, 2024, to shareholders on record as of Dec 15, 2023.
Based on the closing price of $36.07 on Dec 15, the proposed dividend affirms a yield of 2.7%. A steady dividend payout is part of ATN International's long-term strategy to provide attractive risk-adjusted returns to its stockholders. In addition, healthy dividend increases at periodic intervals have been one of its strengths.
Management further increased its share repurchase authorization to $25 million. This portrays management’s confidence in generating strong cash flow for sustainable growth across its markets. The balanced capital allocation strategy further signifies the prudent investment decisions and healthy debt position of the company.
Headquartered in Beverly, MA, ATN International offers digital infrastructure and communications services with a focus on rural and remote markets. The company is progressing steadily with its “Glass-and-Steel” network expansion strategy and is gradually moving away from the legacy wireless wholesale business.
The company is in the final stages of this three-year expansion plan that started in 2022. This aims to develop a highly resilient customer base and a steady revenue stream on the back of relatively short-term increases in capital expenditures. In order to accomplish this goal, the company is investing in an elevated class of connectivity to expand its market position, which bodes well for the consistency and durability of future cash flows.
The acquisition of Sacred Wind Enterprises by Commnet Broadband, which is a wholly owned subsidiary of ATN International, is likely to extend its geographic footprint with a complementary portfolio. It is aiming to focus more on the rural markets to augment its leading position with support from government stimulus programs for broadband deployment in under-served areas.
Zacks Rank and Key Picks
ATN International currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks, Inc. ANET, carrying a Zacks Rank #2 (Buy), is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 20.4% and delivered an earnings surprise of 12%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
United States Cellular Corporation USM, sporting a Zacks Rank #1, is the fourth largest full-service wireless carrier in the United States. The company provides a range of wireless products and services, and a high-quality network to increase the competitiveness of local businesses and improve efficiency of government operations.
U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology. The company is well-positioned for continued demand for broadband.
Aviat Networks, Inc. AVNW, presently carrying a Zacks Rank #2, is a solid pick. Headquartered in Austin, TX, Aviat has been a global provider of microwave networking solutions. It offers public and private operators communications networks to cater to the accretive demand for IP-centric, multi-gigabit data services.
Backed by avant-garde technology, Aviat simplifies the entire lifecycle of designing, deploying and maintaining wireless transport networks with greater performance and reliability. The company is well-positioned to benefit from robust market dynamics, cost-reduction efforts, favorable customer mix and higher investments in innovative software solutions. A solid liquidity position and healthy balance sheet are likely to aid the company in executing key long-term strategic objectives.
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