Steven M. Rogé
Steven M. Rogé is portfolio manager, R.W. Rogé & Company, Beverly, Massachusetts, which manages $220 million. RWRoge.com
Today’s Stock of the Week lets investors benefit from the growth of wireless communications without buying into a telecom. Instead, it is a company that owns something that every telecom needs…
Crown Castle International Corporation (CCI) gives investors a way to benefit from the growing importance of wireless communications. It owns, operates and leases about 40,000 towers in the US. It leases space on the towers to wireless carriers, usually with long-term contracts that give Crown Castle predictable revenue and steadily growing earnings. Wireless carriers that previously operated their own towers have been selling them to Crown Castle, which has greater expertise in tower operations, allowing the carriers to focus on growing their customer bases.
Crown Castle’s revenue of $3.66 billion in 2015 should grow to $3.84 billion this year and $4.04 billion in 2017. The dividend is high at $3.80/share/yr., recently yielding 4.3%. The dividend seems safe—in fact, the firm has enough cash flow to raise it. Share prices have been kept down by fears that some local telecom companies will build their own wireless networks in major urban areas—but this is not a general situation and should not have major long-term impact on Crown Castle.
Earnings per share: 2017 est./$5.05… 2016 est./$4.68… 2015/$4.30.
Steven M. Rogé is portfolio manager, R.W. Rogé & Company, Beverly, Massachusetts, which manages $227 million. RWRoge.com