Valuentum Exclusive Analysis for the Discerning Investor

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Dividend Increases/Decreases for the Week of August 8
Let's take a look at firms raising/lowering their dividends this week.

High-Yielding Crown Castle Is One of Our Favorite REITs
Image Shown: We include Crown Castle International Corp as an idea in our High Yield Dividend Newsletter portfolio. Image Source: Crown Castle International Corp – October 2021 IR Presentation. Crown Castle International Corp is a real estate investment trust (‘REIT’) that owns and operates cell towers, fiber networks, and small cell nodes in the US. These assets form the backbone of wireless infrastructure and are key to enabling the domestic rollout of 5G networks and supporting existing 4G networks. We include shares of CCI in our High Yield Dividend Newsletter portfolio as we are big fans of its strong dividend coverage (when taking its ability to tap capital markets into account), impressive growth outlook, and high-quality cash flow profile. Shares of CCI yield ~2.9% as of this writing after the REIT boosted its quarterly dividend by 11% sequentially in October 2021, bringing its annualized payout up to $5.88 per share. Over the long haul, Crown Castle targets 7%-8% annual dividend growth. The REIT’s expansive asset base stretches across the US with operations in virtually every major metropolitan market. Crown Castle’s long-term contracts with its tenants (namely telecommunications giants) provide substantial visibility as it concerns its future cash flow performance. Additionally, Crown Castle generates substantial free cash flows, something we like a lot.

Stock Market Outlook for 2021
2020 was one from the history books and a year that will live on in infamy. That said, we are excited for the future as global health authorities are steadily putting an end to the public health crisis created by COVID-19, aided by the quick discovery of safe and viable vaccines. Tech, fintech, and payment processing firms were all big winners in 2020, and we expect that to continue being the case in 2021. Digital advertising, cloud-computing, and e-commerce activities are set to continue dominating their respective fields. Cybersecurity demand is moving higher and the constant threats posed by both governments (usually nations that are hostile to Western interests) and non-state actors highlights how crucial these services are. Retailers with omni-channel selling capabilities are well-positioned to ride the global economic recovery upwards. Green energy firms will continue to grow at a brisk pace in 2021, though the oil & gas industry appears ready for a comeback. The adoption of 5G wireless technologies and smartphones will create immense growth opportunities for smartphone makers, semiconductor players and telecommunications giants. Video streaming services have become ubiquitous over the past decade with room to continue growing as households “cut the cord” and instead opt for several video streaming packages. We’re not too big of fans of old industrial names given their capital-intensive nature relative to capital-light technology or fintech, but there are select names that have appeal. Cryptocurrencies have taken the market by storm as we turn the calendar into 2021, but the traditional banking system remains healthy enough to withstand another shock should it be on the horizon. Our fair value estimate of the S&P 500 remains $3,530-$3,920, but we may still be on a roller coaster ride for the year. Here’s to a great 2021!

AT&T Tries Again…This Time: Leap Wireless
After regulators blocked a deal for T-Mobile in 2011, AT&T has agreed to acquire Leap Wireless.

Dish Won’t Go to War Over Clearwire; What’s Next?
News hit the tape that Dish Network would end its pursuit for Clearwire. What's next?

Wireless Industry Consolidation Continues
Sprint purchases US Cellular’s operations in five states. We expect the industry to shrink.

MetroPCS to Merge with T-Mobile; Will It Hurt Other Carriers?
Though we don't think it will hurt the Big 3, we think Leap and US Cellular could face overbearing competition.

Will Sprint’s Good Fortunes Continue?
Shares of the phone carrier have rallied on comments from its CEO. Still, we don't like Sprint's shares much at current levels.