There's a good chance that you couldn't function without a cellphone (you might even be reading this article on one). But your cellphone wouldn't work if there weren't companies like real estate investment trust (REIT) American Tower (NYSE: AMT). It owns the communication sites on which cell towers are located. In addition to 13 years of annual dividend increases and a 17% dividend growth rate over the past decade, dividend growth investors will also want to understand the leverage built into the REIT's business model as they consider buying the stock.

You can probably buy a certificate of deposit (CD) today that yields around 5% or so. That makes American Tower's roughly 3.2% dividend yield look a little skimpy. But there's something important that you are giving up when you buy a CD -- dividend growth. With a CD, you basically collect a static interest rate and then get your cash back at the end. With inflation running hot today, that's not such a compelling deal. And if rates are lower when the CD matures, you'll have to reinvest in a new CD with a lower rate, meaning you'll earn less interest.

Image source: Getty Images.

Continue reading

Source Fool.com