Delving into the Dividend History, Yield, Growth, and Sustainability of Crown Castle Inc (CCI, Financial)
Crown Castle Inc (CCI) recently announced a dividend of $1.57 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-14. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into Crown Castle Inc's dividend performance and assess its sustainability.
Understanding Crown Castle Inc's Business Model
Crown Castle International owns and leases roughly 40,000 cell towers and more than 85,000 route miles of fiber in the United States. The company primarily leases space on its towers to wireless service providers, who install equipment on the towers to support their wireless networks. With its towers and fiber predominantly located in the largest U.S. cities and a concentrated customer base, Crown Castle Inc operates as a real estate investment trust.
Exploring Crown Castle Inc's Dividend History
Since 2014, Crown Castle Inc has maintained a consistent dividend payment record, distributing dividends on a quarterly basis. The chart below provides a glimpse into the company's annual Dividends Per Share for tracking historical trends.
Decoding Crown Castle Inc's Dividend Yield and Growth
As of today, Crown Castle Inc's 12-month trailing dividend yield stands at 6.35%, with a 12-month forward dividend yield of 6.45%, suggesting an expectation of increased dividend payments over the next 12 months. Crown Castle Inc's dividend yield outperforms 44.65% of global competitors in the REITs industry, making it an attractive proposition for income investors.
Over the past three years, Crown Castle Inc's annual dividend growth rate was 9.30%. However, extending to a five-year horizon, this rate decreased to 8.80% per year. The 5-year yield on cost of Crown Castle Inc stock as of today is approximately 9.68%.
Evaluating Dividend Sustainability: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio of Crown Castle Inc as of 2023-06-30 is 1.57, which may suggest that the company's dividend may not be sustainable. Crown Castle Inc's profitability rank of 9 out of 10, however, suggests good profitability prospects, with the company reporting positive net income for each year over the past decade.
Investigating Growth Metrics: The Future Outlook
Crown Castle Inc's growth rank of 9 out of 10 suggests a good growth trajectory relative to its competitors. The company's strong revenue per share and 3-year revenue growth rate of approximately 5.30% per year on average, along with its 3-year EPS growth rate of approximately 29.20% per year on average, and 5-year EBITDA growth rate of 34.90%, indicate robust growth metrics that can sustain dividends in the long run.
Concluding Thoughts
While Crown Castle Inc's high payout ratio may raise questions about the sustainability of its dividends, the company's strong profitability and robust growth metrics present a positive outlook for the future. Thus, investors should keep a close eye on Crown Castle Inc's dividend performance and growth prospects in the coming quarters.
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