Betting on the Infrastructure

Crown Castle International currently pays a 2.70%-yield and a per-share payout dividend of $5.32. This REIT focuses on 5G communications infrastructure, towers, networks (fiber optic), and 5G cells. With Funds from Operation and a backlog of leases, the company believes that it can support the 7% to 8% annual dividend growth for many years to come. Global 5G Phone Shipments, 5G Subscriptions are ramping up so CCI will get a boost as 5G wireless networks are deployed and more smartphones hit the market. Telecom industry groups have been forecasting that the market will incorporate 5G into business networks and investments will jump over the next 4 years, to $16.9 billion in 2025. Crown Castle will be a 5G infrastructure partner of Dish Network and CCI connect will need to connect to multiple fiber-optic networks. CCI also makes small-cell radio antennas for 5G services in urban areas that will require fiber-optic connections to local hubs. Whether or not the current infrastructure bill passes in congress, we at Owls Nest Capital believe 5G infrastructure investing is a long game opportunity for growth with CCI leading the way.