Crown Castle International Corp. (NYSE:CCI) is a notable player in the communications sector. The Houston, Texas-based company has a rich portfolio that’s reaffirmed by its subsidiaries such as the Global Signal, Pinnacle Towers, and Crown Atlantic, among many others. This $54.72 billion market cap company currently has a dividend yield of 3.42%, which, although is inferior to many of the REITs of its caliber, has demonstrated an admirable growth. With a dividend growth of 27% since 2016 and a clear upshot in almost all performance metrics, Crown Castle has every right to turn heads.
Crown Castle International Corp. (NYSE:CCI) Dividend Outlook
Crown Castle International’s dividend history is nifty. It has been posting steady year-over-year rise in its dividend payouts. In 2014, the company posted a dividend payout of $0.35, yet its latest payout is $1.125 per share.
Despite having a healthy dividend growth, some industry experts are casting aspersions on the sustainability of this growth, citing its high dividend payout ratio of 2.77. Over the past 13 years the highest payout ratio posted by Crown Castle International was 3.86, the lowest was 2.06, and the medium was 3.19. The dividend growth rate per year over the past year remains at 8.70% and 8.50% per year over the past three years.
Crown Castle International Corp. (NYSE:CCI) Stock Performance
High dividend yields and profits don’t just come out of nowhere. Many factors play a role. In most, if not all, of the most important metrics, Crown Castle International Corp. has performed exemplarily and beat Wall Street expectations. In its year-over-year reports, Crown Castle posted a 9.78% growth in revenue, hitting $1.43 billion. The stock also delivered a rise in net income, net profit margin, and diluted earnings per share, which shot by a surprising 109.52% to hit $0.44.
Crown Castle’s latest quarterly reports also beat estimates and brightened the company’s 2019 outlook. In its Q2 postings, the stock delivered 13% rise in funds from operations, 37% rise in net income, and a revenue upshot of 6% to settle at $1.238 billion.
Clearly, the future is looking agleam for Crown Castle International Corp. If nothing out of the ordinary happens, a slump in the stock’s price is highly unlikely. The company’s communications segment can only get stronger, more so because of the widening adoption of the 5G technology and the company’s expansion of its services across different locations.