Long Term Play Considering Cell Phone Data
Video: CNBC sits down with American Tower CEO James Taiclet to discuss cell phone data usage and the race to speed up connectivity. American Tower (AMT), a great long term play considering cell phone data, is a REIT (Real Estate Investment Trust) owns and operates nearly 144,000 cell phone towers in North America, Latin America and Asia. Cell phone data usage is growing at 30-40% a year, every year the past 5 to 10 years according to Taiclet in the interview. American Tower’s tenants include AT&T, Verizon, T-Mobile and Sprint.
American Tower (AMT) is up 4.0% YTD compared to the S&P 500 (SPY) which is up 9% YTD. However, AMT has been hammered of late because it’s a bond like stock yielding a 2+% dividend, a use of funds and with bond rates rising. It could be strongly argued that the dips should be bought in this stock because there is such strong growth in cell phone data usage and the company has tenants in all 4 major wireless carriers. American Tower holds the #2 position in the XLRE, the SPDR REIT ETF with an 8% holding weighting.
Real Estate (XLRE)
American Tower CEO: Race to speed up connectivity