This Dividend Stock Sees Towering Growth Ahead
Crown Castle (NYSE: CCI) has an excellent dividend track record. Since converting to a real estate investment trust (REIT) in 2014, the company has grown its payout at a 9% annual rate. That's ahead of the 7.5% average annual dividend growth rate of the S&P 500 during that timeframe. That above-average growth rate is even more impressive when factoring in Crown Castle's much higher dividend yield. At 3.4%, it's more than double the yield of an S&P 500 index fund. That higher yield and dividend growth rate combination has enabled the REIT to deliver market-beating total returns.
The infrastructure REIT expects to continue growing its high-yielding dividend at a healthy rate for years to come. Here's a look at what's driving its ability to deliver towering dividend growth.
Crown Castle recently reported its second-quarter results. The REIT grew its site rental revenues by 10%, while its adjusted funds from operations (AFFO) increased by 6% per share. That was a solid showing for the company amid what it has described as a transitional year. It's currently working with mobile carriers to "upgrade their existing cell sites and deploy thousands of new sites on our macro towers as part of the first phase of the 5G build out," according to CEO Jay Brown's comments in the second-quarter earnings release.
Source Fool.com
