CCI - Crown Castle: Price Drop Presents Buying Opportunity Before Earnings

2024-01-22 08:59:00 ET

Summary

• Crown Castle is undergoing a strategic shift toward the fiber segment, which may provide an attractive entry opportunity for investors.
• The decline in CCI's stock price offers an opportunity to collect a high yield of more than 5.7% while we see how the transitionary period plays out.
• CCI's upcoming earnings report and the involvement of activist investor Elliott Investment Management could unlock hidden value and enhance the appeal of the stock.

Thesis

I love collecting dividends from my holdings. For me, the cash flow received makes it so much more enjoyable to be a long-term investor. It also makes it a lot easier psychologically to continue holding even if the price performance isn't heading in the direction I would like. I imagine this is the case for Crown Castle ( CCI ) shareholders as of recently. The price is down nearly 50% but at least they're collecting consistent income from the REIT. The combination of the price drop, dividend yield over 5%, and the upcoming earnings report provides an attractive entry opportunity....

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