Summary: American Tower (NYSE: AMT) is a data center REIT that specializes in owning and operating wireless and broadcast communications infrastructure. One of the most convenient ways to invest in it is through a reputable broker platform like eToro.
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About American Tower
American Tower is among the leading players in the communication infrastructure industry. They own and operate a vast network of towers and other structures used by wireless and broadcast companies to transmit signals. By providing essential infrastructure for these industries, American Tower generates rental income, making it an attractive choice for investors looking for stable, income-generating stocks.
The company operates globally, with a presence in various countries, making it a diverse and robust company. Furthermore, as a real estate investment trust (REIT), American Tower is required to distribute at least 90% of its taxable income to shareholders in the form of dividends. This can make AMT stock particularly appealing to income-focused investors.
How to buy American Tower stock: Step-by-step
Investing in REITs like American Tower is a straightforward process. You can, therefore, follow these steps to buy AMT stock:
Step 1: Choose a brokerage
The first step in buying American Tower stock is to choose a brokerage platform. Namely, a brokerage is a firm that facilitates the buying and selling of stocks and other securities. When choosing a broker, you should consider:
- Fees and commissions;
- User-friendliness;
- Research tools;
- Customer support.
In this case, our go-to broker is eToro, a widely popular platform that offers a myriad of useful features to make your investment journey convenient. Also, it’s safe to use as it holds licenses from regulatory authorities, such as FinCEN.
- Commission-free stock trading;
- Access to over 2,000 stocks from 17 different exchanges;
- The option to purchase fractional shares;
- A user-friendly platform that simplifies the trading experience.
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
Step 2: Fund your account
After opening a brokerage account, you’ll need to fund it. This involves transferring money into your brokerage account, which you will use to buy AMT stock. Most brokerages offer multiple funding options, including bank transfers, wire transfers, and online transfers.
Still, make sure you have enough funds in your account to cover the cost of purchasing AMT shares, along with any potential fees or commissions. The thing is—it’s essential to manage your funds wisely and not invest more than you can afford to lose.
Step 3: Place your order
Once you fund your brokerage account, you can place an order to buy American Tower stock. Here’s how:
- Log in to your brokerage account;
- Search for American Tower using its ticker symbol, AMT;
- Choose the type of order you want to place, with common types being market orders and limit orders;
- Enter the number of shares you want to buy and review your order details;
- Confirm the order and, if everything looks correct, submit it.
Note
AMT stock price today
Pros and cons of buying AMT stock
Pros
- Steady dividend income: AMT is a REIT required to distribute a significant portion of its income as dividends, providing a consistent income stream for investors;
- Long-term growth potential: The demand for wireless and broadcast infrastructure continues to grow, and AMT is well-positioned to benefit from this trend;
- Diversification: American Tower operates globally, reducing geographic risk;
- Infrastructure growth: As technology advances and 5G networks expand, the need for communication infrastructure is likely to increase, potentially benefiting AMT shareholders.
Cons
- Interest rate sensitivity: REITs, including AMT, can be sensitive to changes in interest rates;
- Market volatility: Like any stock, AMT can experience price fluctuations due to market volatility;
- Regulatory risks: Changes in regulations or government policies can impact AMT’s operations and, consequently, its financial performance.
Note
Common mistakes to avoid when investing in REITs
Investing in data center REITs like American Tower requires a different approach than investing in individual stocks or other asset classes. Hence, here are some common mistakes to avoid if you invest in AMT:
- Neglecting due diligence: Don’t rush into an investment without researching the company thoroughly. Analyze the company’s financials, growth prospects, and management team before committing your money;
- Ignoring diversification: Don’t put all your investment capital into a single REIT. Instead, diversify your portfolio by investing in a variety of sectors and industries to spread risk;
- Failing to understand tax implications: REIT dividends are often taxed differently than regular stock dividends. So, consult with a tax professional to understand the tax implications of your AMT investment;
- Overlooking interest rate sensitivity: Be aware that REITs, including AMT, can be sensitive to changes in interest rates. Rising interest rates may impact the value of your investment;
- Short-term thinking: REITs are typically long-term investments. Avoid buying and selling frequently, as this can lead to high transaction costs and potential losses;
- Not reinvesting dividends: Consider reinvesting dividends to benefit from the power of compounding over time, which can enhance your long-term returns;
- Market timing: Trying to time the market can be challenging. Instead, focus on a long-term investment strategy that aligns with your financial goals.
FAQs about how to buy American Tower stock
What is a REIT?
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate assets. REITs distribute most of their income to shareholders in the form of dividends, making them an attractive investment for income-oriented investors.
What is American Tower's dividend yield?
American Tower’s dividend yield can vary over time, but it has historically been in the range of 1.5% to 2%. Keep in mind that dividend yields are subject to change based on the company’s financial performance and market conditions.
Are there any tax advantages to investing in REITs like AMT?
Yes, REITs offer certain tax advantages. They are not subject to federal income tax at the corporate level, and they are required to distribute at least 90% of their taxable income to shareholders in the form of dividends. However, these dividends are typically taxed as ordinary income, so it’s essential to consult with a tax professional to understand the specific tax implications for your situation.
What is the minimum investment to buy American Tower stock?
The minimum investment to buy American Tower stock depends on the price of a single share and the requirements of your chosen brokerage. Some brokerages have no minimum investment, while others may require a minimum deposit or purchase of at least one share.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
