Wanting on the universe of shares we cowl at Dividend Channel, in buying and selling on Tuesday, shares of American Tower Corp (Image: AMT) had been yielding above the three% mark primarily based on its quarterly dividend (annualized to $6.48), with the inventory altering palms as little as $211.55 on the day. Dividends are significantly vital for traders to think about, as a result of traditionally talking dividends have offered a substantial share of the inventory market’s whole return. For instance, suppose for instance you bought shares of the S&P 500 ETF (SPY) again on 12/31/1999 — you’ll have paid $146.88 per share. Quick ahead to 12/31/2012 and every share was value $142.41 on that date, a lower of $4.67/share over all these years. However now contemplate that you just collected a whopping $25.98 per share in dividends over the identical interval, for a constructive whole return of 23.36%. Even with dividends reinvested, that solely quantities to a median annual whole return of about 1.6%; so by comparability accumulating a yield above 3% would seem significantly enticing if that yield is sustainable. American Tower Corp (Image: AMT) is an S&P 500 firm, giving it particular standing as one of many large-cap corporations making up the S&P 500 Index.

Usually, dividend quantities should not at all times predictable and have a tendency to observe the ups and downs of profitability at every firm. Within the case of American Tower Corp, wanting on the historical past chart for AMT under will help in judging whether or not the newest dividend is more likely to proceed, and in flip whether or not it’s a cheap expectation to count on a 3% annual yield.

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