SpaceX Could Be a Game Changer for These 2 Dividend Stocks
Key PointsSpaceX is reportedly seeking to lease space on 80,000 U.S. towers.
SpaceX might be on the verge of disrupting the U.S. wireless industry by planning to establish a nationwide mobile network. This news could negatively impact traditional mobile carriers, but it could also present an opportunity for two dividend-paying real estate investment trusts (REITs) that own cell towers: Crown Castle (CCI) and American Tower (AMT).
SpaceX has recently acquired a low-band spectrum portfolio from Grain Management for $8 billion, which will help it launch a mobile service in the U.S. Moreover, the company is reportedly seeking access to 80,000 cell tower sites in the U.S., which it is reportedly in talks to secure from two major tower owners: Crown Castle and American Tower.
Both REITs own, operate, and lease about 40,000 sites across the U.S., but American Tower has a more diversified platform that includes data centers, which could help it continue growing its dividend. While a deal with SpaceX is not guaranteed, it could provide a significant boost to the country's top tower REITs.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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