American Tower (AMT)

American Tower (AMT-N) or Sba Communications (SBAC-Q)? This is tough. Both companies are real estate investment trusts that own mobile cell towers all across the US and in Latin America. In this case, you are basically buying a REIT and a fairly quickly growing one. The REIT sector has pulled back over the last 2-3 weeks as 10 year bond yields moved higher. However, this one is going to be a dividend grower and you are going to get above REIT sector growth. He would be happy owning either one.

They put up wireless towers, are considered a REIT, and a cash cow. In 5 years there will be more smartphones and tablets out there.

Have shareholder friendly policies around share buybacks and dividend growth. Went through the change from Corp to Real Estate Investment Trust which has unlocked a lot of value. He has pared back his exposure by about half in order to move money into US financials to get better dividend growth in the next 12-16 months. Still likes but looking for better dividend growth in US financials.

Basically Cells towers across the US, into Africa and Europe. 10%-11% cash flow growth year-over-year in the domestic US portfolio. You are looking at 25%-35% cash flow growth per year in the emerging markets that they have exposure to. You can bank on them growing earnings at 10%-15% year-over-year. Yield of 1.25%.

Tower REITs have had several short term pullbacks over the last 4 years. That is natural. Probably good support at $70.

(Market Call Minute) Good long term story but high valuation.

Anyone with kids can see how much data is being consumed through handheld devices. This one has a portfolio of telecom towers all over the world and is in the process of converting to a REIT. Dividend will grow at 15-20% per year. Not insignificant dividend today. A great area to focus on and is one of the few secular themes in this economy.