5 Best Telecom Stocks to Invest In

4. American Tower Corporation (NYSE:AMT)

Number of Hedge Fund Holders: 62

American Tower Corporation (NYSE:AMT) is one of the largest global REITs that owns, operates, and develops multi-tenant communications real estate. On December 8, American Tower Corporation (NYSE:AMT) declared a $1.56 per share quarterly dividend, a 6.1% increase from its prior dividend of $1.47. The dividend is payable on February 2, 2023 to shareholders of record on December 28. The dividend yield on December 26 came in at 6.06%. 

On December 14, Wells Fargo analyst Eric Luebchow raised the price target on American Tower Corporation (NYSE:AMT) to $245 from $225 and kept an Overweight rating on the shares. The analyst believes the tower sector remains a primary defensive sector heading into an uncertain 2023, with steady demand trends as carrier activity remains high.

According to Insider Monkey’s data, 62 hedge funds were long American Tower Corporation (NYSE:AMT) at the end of September 2022, compared to 52 funds in the last quarter. Charles Akre’s Akre Capital Management is the biggest position holder in the company, with approximately 7 million shares worth $1.5 billion. 

Here is what Baron Real Estate Fund has to say about American Tower Corporation (NYSE:AMT) in its Q2 2022 investor letter:

“American Tower is a leading global tower company with 220,000 communication sites globally and over 40,000 in the U.S. We added to our position during the market dislocation and as it became increasingly clear that the company would put permanent equity financing in place at better-than-expected terms for its previously announced acquisition of CoreSite (thereby removing the “equity overhang”).

In addition, the company stepped back from a large potential deal in Europe, which would have required significant incremental funding, due to unfavorable contract terms and price. This decision further reinforced our confidence in management’s capital allocation discipline knowing that these were highly sought-after assets.”