Where does Crown Castle rank after its 7% announced dividend increase?

cci

Crown Castle International Corporation (CCI) announced an annual dividend of $0.95, a 7 percent increase from the prior rate of $0.885 per share. The dividend will be paid at the new higher rate on December 30, 2016, to shareholders of record at close of business on December 16, 2016. Crown Castle International Corp. is currently priced at $94.92.

Listed in the table below are the annual dividend payments since 2014. Our analysis of Crown Castle International Corp. as a Top 100 Dividend Stock candidate is listed below;

Date Quarterly Dividend
12/16/2016 0.95
9/14/2016 0.885
6/15/2016 0.885
3/16/2016 0.885
12/16/2015 0.885
9/16/2015 0.82
6/17/2015 0.82
3/18/2015 0.82
12/17/2014 0.82
9/17/2014 0.35
6/18/2014 0.35
3/18/2014 0.35

Analysis of Crown Castle International Corp. is based upon our five key criteria for the Top 100 list, which include; 

Category Value Score
Dividend Yield 4.00% 64
Dividend Growth (3 year avg) 79%  6
Forward P/E 56.2  390
S&P Financial Rating B+  200
Beta 0.85  75
Total Score    735

Additional Information on P/S ratio and historical yield;

% Yield 3 Year Div. Growth Rate 6 Year Div. Growth Rate SPS 2016 P/S Ratio 10 yr P/S Low 10 yr P/S High 5 yr max Yield % 5 yr lowest Yield %
4.00% 79% NA 11.35 8.36 1.66 9.24 4.24% 2.70%

Final Analysis;

  • Crown Castle’s dividend yield is above that of the S&P 500 Index and is above its average historical dividend yield.
  • Crown Castle maintains a 3 year dividend growth rate of 79%.
  • Crown Castle has paid out a dividend consecutively for the past 3 years.
  • Crown Castle is trading at a high forward P/E ratio and at a high price/sales (P/S) ratio.  From a relative valuation perspective based upon P/S, Crown Castle is overvalued.
  • Crown Castle maintains a credit rating of B+. This is below investment grade, a negative.
  • Crown Castle maintains a beta of 0.85, lower than the average company.

Based upon its poor financial rating and high P/E , Crown Castle International Corp. does not qualify as one of our Top 100 Dividend Stocks.

Crown Castle International Corp. Dividend Yield Chart (Click to enlarge) cci2

Chart Explanation:  Dividend growth stocks may be viewed favorably when the current yield is above historical readings for the past 5 years.

Further information on dividend investing and evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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