Easy Extra Money Idea of the Day:
Consumption of wireless data from smart phones and smart devices is expected to explode higher moving forward. How can you play this trend? I like Crown Castle International (CCI) for a number of reasons.
CCI occupies a significant position in my dividend portfolio and I really like their future growth prospects. CCI operates in the USA and owns and leases cell tower space to companies such as AT&T, Verizon, Sprint, and T-Mobile. Obviously this is an important and vital function to those big companies and allows the millions of phones and tablets to make calls, connect to the internet, send messages, etc. By most accounts, data consumption is only going to increase (via streaming and the Internet of Things) which should be good news for companies like CCI. They pay a strong dividend and it should be healthy moving forward with these strong growth prospects. CCI also sees a strong future in small cells; for example they can place small cells on lamp posts around town to add or extend network connectivity where towers/antennas are not practical (such as dense downtown areas). Finally, working in CCI’s favor is that setting up towers and antennas is costly and regulated so there are high barriers to entry.
- CCI owns, operates, and leases shared wireless infrastructure. They provide towers, distributed antenna systems, and small cell networks.
- Founded in 1994 and based in Houston, TX
- Dividend Payout Schedule: 3-6-9-12
- To create monthly dividend income, pair with an investment from Dividend Payout: 1-4-7-10 and Dividend Payout: 2-5-8-11
Note that CCI is a REIT (Real Estate Investment Trust) which means that, for tax purposes, its dividends are treated as ordinary income and taxed at a higher rate. So it may be better suited for an IRA (instead of a taxable account).
Check out our YouTube review of CCI!