The Motley Fool: American Tower is an ultrareliable business

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American Tower is a specialist in broadcast communications infrastructure. It also looks attractive in recent stages.

American Tower’s business is strong, and will continue to grow. Top line sales have increased by nearly 49 percent over the past five years. Free cash flow declines in 2022 due to slower prepayment rates from major customers – understandable amid an inflationary economic crisis. The reduced cash flow was still good at $1.8 billion in that soft year.

American Tower runs a very unusual business tied to multi-year contracts, and its services should be in demand as long as wireless transmission and networking are a thing — in other words, forever. However, the stock has grown relatively slowly for five years, while the business has grown.

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The stock offers a generous dividend, recently offering 3.3%. That’s not surprising, since American Tower is a real estate investment trust that is required to distribute at least 90% of its taxable income in the form of dividends.

As this cash machine continues to grow, American Tower will continue to raise its dividends and put billions in the pockets of shareholders. (The Motley Fool owns and recommends shares of American Tower.)

Ask the fool

From GL of Sherwood, Ore. What is the difference between a merger and acquisition?

The fool answers: Both involve the merger of two companies, but there are some key differences. Generally, when two companies are similar in size, they merge to form a new company. It will typically be a new legal entity with a new name and symbol.

With an acquisition, a large company typically buys and controls a smaller one. The purchased company ceases to exist on its own, and a new company is not established. Acquisitions happen more often than mergers. Mergers can be a friendly and collaborative effort, while acquisitions can be hostile.

Famous mergers include Exxon and Mobil (forming ExxonMobil) and Citicorp and Travelers Group (forming Citigroup). Popular purchases include Amazon.com Acquiring Whole Foods Market, and buying Walt Disney Pixar. Some acquisitions, such as CVS Health’s purchase of Aetna, are referred to as mergers, to celebrate a large acquisition and save face. There are also some key differences in how the business world uses terms.

From Buffalo Grove, IL, TN: How does a stock start trading in the morning at a much higher or lower price than it closed the day before?

The fool answers: A buy or sell order released after the market closed may have caused the stock to pile up overnight.

If Buzzy’s Broccoli Beer (ticker: BRRRP ) closes at $50 on Tuesday but opens at $43 on Wednesday morning, it either announced the loss of a major customer or posted a disappointing earnings report. If the BRRRP opens trading very high, it may have announced some good news – or maybe it’s buying at a premium.

Stupid school

Collectively, we’re all collecting tens of billions of dollars in “dumping fees,” which Federal Trade Commission Chairwoman Lena Kahn called “unexpected and unnecessary.” The FTC also called them “concealed and fraudulent.”

They may show up on bills for cable or internet service, lodging or bank statements. (Many banks charge “inactivity” fees, for example, for no reason.) There are also surprise fees when ordering food delivery or buying concert tickets and buying a house.

Jeff Galak, a marketing professor at Carnegie Mellon University’s Tepper School of Business, referred to “fee inflation,” saying that “fees are a way to raise prices without raising prices.” Hidden fees make it difficult for consumers to shop for the best prices.

Consumers should not be discouraged by the thought that nothing can be done about excessive or wasteful charges. The FTC, along with other agencies — such as the Consumer Financial Protection Bureau, the Federal Communications Commission, the Department of Housing and Urban Development, and the Department of Transportation — is working to ban more junk payments.

In fact, the FTC recently issued a rule banning many “hidden and misrepresented fees.” According to the FTC, it “prevents businesses from running on bills with hidden and fraudulent charges, helps consumers know exactly how much they’re paying and what they’re getting, and helps companies offer the lowest prices.” . Businesses should include all applicable fees when telling consumers prices, making it easier to … shop for the lowest price.

The FTC estimates that, under the proposed rule, consumers could save more than 50 million hours a year by comparing live streaming tickets and short-term lodging prices.

The proposal is not yet law, and the FTC is seeking comments from consumers. If you want to contribute your opinion, visit FTC.gov And click “Submit Public Comment”.

My stupid investment

From SC My most regrettable investment move was not investing sooner. I waited until my mid-40s to start seriously investing in the stock market.

The fool answers: Glad you learned this lesson and at least started in your 40s. To see the power of starting early, consider this example: Imagine a 25-year-old and a 45-year-old; Both want to retire at age 65. If the 45-year-old invests $10,000 a year for 20 years and an average annual income of 8%, he earns more than 450,000 dollars. But if a 25-year-old invests just $5,000 a year at 8%, she’ll have $1.3 million in 40 years.

Note that they each invested a total of $200,000. The only difference is that the small investor has had more time for her money to grow. Your very first investment dollars are very powerful. It is worth noting that if you are diligent and stick to your plan, you can raise a lot of money with relatively modest investments.

The U.S. stock market has posted annual returns of nearly 10% for decades (not including inflation), so it’s reasonable to expect average returns of 8%, though not guaranteed. Investing in a low-fee, broad-market index fund can help you earn returns similar to the overall market.

who am i?

It dates back to 1937 when one of the founders got a recipe from a French chef in New Orleans when he started selling baked goods to local grocery stores in Winston-Salem, North Carolina. I have been bought and sold many times. “Hot Light” and app will notify users when my supplies are hot and fresh. I make more than $1.6 billion a year and will soon have a market cap of $2.2 billion. You can buy my treatment at nearly 12,000 locations in over 30 countries. I hope you don’t roll your eyes reading this. who am i?

Don’t you remember last week’s little quiz? get along over here.

Last week’s trivia answer: Airbus



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