Communications Sector

[gfp927z]

American Tower - >>> The global connector



http://www.fool.com/investing/2016/12/27/3-stocks-to-help-you-build-retirement-wealth.aspx?source=yahoo-2&utm_campaign=article&utm_medium=feed&utm_source=yahoo-2



American Tower (NYSE:AMT) also generates very stable revenue by leasing space on its communications towers to customers. These clients typically sign long-term contracts and often pay many of the associated expenses. That leads to relatively predictable revenue for American Tower, enabling it to pay a sustainable dividend that currently yields more than 2%.

American Tower expects to grow its revenue streams by adding more tenants to its towers as well as building or buying additional towers. Driving the need for more tower space is rising data demand by smartphone and tablet users as well as the rapid increase in machine-to-machine data transfers (i.e., Internet of Things). Data usage from those machines in the U.S. alone is expected to grow from just 34 million lines in 2012 up to 639 million lines by 2019. Meanwhile, total U.S. mobile traffic data is projected to increase sixfold through 2020. These trends should enable American Tower to continue growing its tower rental streams at a robust rate, with the company positioned to continue expanding revenue and cash flow by the same mid-teens compound annual growth rate it has captured since 2007.

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