American Tower: Why I'm Buying A Wide Moat REIT At A Decade High Yield

Francesco Infusino 254 Followers Follow Summary American Tower is rated a Strong Buy, trading near 52-week lows with a dividend yield close to a decade high. AMT's resilient business model, long-term leases, and growing data center segment underpin reliable cash flow and strong dividend coverage. Temporary headwinds: higher rates, Dish lease exit, and refinancing costs are largely priced in, with growth expected to reaccelerate in 2027. My fair value estimate is 15–20% above current levels, supported by robust AFFO, conservative debt management, and favorable risk/reward. shaunl/iStock via Getty Images Introduction Recently, real estate and infrastructure stocks have been under pressure. Higher Treasury yields make dividends less appealing and require a price adjustment to reflect the risk premium, squeezing heavily indebted REITs. Even though American Tower ( This article was written by Francesco Infusino 254 Followers Follow I am a driven business student who is interested in finding value stocks with a fit future for the long term. I also would like to disclose my association with analysts, Jishan Sidhu and Benjamin Lisi. Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.