Last month, the Federal Reserve raised its benchmark interest rate by 75 basis points, the highest increase in a single meeting since 1994, and could raise rates further to fight the…
multi-decade high inflation. As a result, many analysts expect the economy to slip into a recession.
In addition, a decline in consumer spending and other macroeconomic headwinds are expected to keep the stock market under pressure. Amid this environment, investors could turn toward large-cap REIT stocks to hedge their portfolios against the market fluctuations, as they offer a steady income stream through dividends.
It could be wise to invest in quality REITs Crown Castle International Corp. (CCI), Equinix, Inc. (EQIX), and Weyerhaeuser Co. (WY). These stocks are rated Buy in our proprietary rating system.
Crown Castle International Corp. (CCI)
With a market capitalization of $74.64 billion, CCI owns, operates, and leases more than 40,000 cell towers and approximately 80,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology, and wireless service – bringing information, ideas, and innovations.
On April 20, 2022, Jay Brown, CCI’s CEO, said, “We expect the deployment of 5G in the U.S. to extend our opportunity to create long-term value for our shareholders while delivering dividend per share growth of 7% to 8% per year.”
While CCI’s four-year average dividend yield is 3.18%, its current dividend translates to a 3.41% yield.
CCI’s site rental revenues increased 15% year-over-year to $1.58 billion in the first quarter, which ended March 31, 2022. The company’s adjusted EBITDA grew 22% year-over-year to $1.10 billion, while its income from continuing operations came in at $421 million, representing a 248% year-over-year increase. Also, its income from continuing operations per share came in at $0.97, up 246% year-over-year.
Analysts expect CCI’s EPS and revenue to increase 56.1% and 9.4% year-over-year to $3.95 and $6.94 billion, respectively, in fiscal 2022. It surpassed the consensus EPS estimates in each of the trailing four quarters.
It’s no surprise that CCI has an overall B rating, equating to Buy in our POWR Ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
In addition, the stock has a B grade for Growth, Stability, Momentum, and Sentiment. Click here to see CCI’s ratings for Quality and Value as well. In addition, CCI is ranked #9 out of 51 stocks in the REITs – Diversified industry.
Equinix, Inc. (EQIX)
EQIX is the world’s digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. It allows today’s businesses to access the right places, partners, and possibilities they need to accelerate their advantage. It has a market capitalization of $61.26 billion.
On May 3, 2022, EQIX announced it had extended Platform Equinix deeper into Latin America following the acquisition of four data centers in Chile and one additional data center in Peru from Empresa Nacional De Telecomunicaciones S.A. This acquisition solidifies the company’s position as the…
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