With Growth Reaccelerating, This 3.7%-Yielding Dividend Stock Is a Screaming Buy
The past year has been challenging for American Tower (NYSE: AMT). The real estate investment trust (REIT) focused on data infrastructure has lost a quarter of its value from its 52-week high. That has pushed its dividend yield up to 3.7%.
Several factors have weighed on the REIT, including macroeconomic challenges, tenant issues, and higher interest rates. They have masked the underlying strength of its global tower and U.S. data center portfolio. However, the tailwinds driving demand for the infrastructure REIT's assets broke through during the third quarter, driving accelerated revenue and earnings growth.
American Tower CEO Tom Bartlett noted that the company had a "strong quarter, as our global portfolio of communications assets continued to demonstrate resiliency in an increasingly challenging macroeconomic environment." The REIT's property revenue increased by 7% to nearly $2.8 billion, while its adjusted funds from operations (FFO) surged 9.5% to $1.2 billion. Growth accelerated significantly from Q2 when property revenue increased by 4.4%, while adjusted FFO declined by 0.4%.
Source Fool.com
