American Tower and Crown Castle: Evaluating Tower REIT Dividend Potential
Crown Castle yields 6.2% but reduced its dividend from $6.26 per share in fiscal 2024 to $4.75 in fiscal 2025, while American Tower yields 4.5% and has been raising its payout. American Tower's fiscal 2025 AFFO payout ratio was 63%, compared with 109% for Crown Castle, and analysts project 64% and 93% respectively for fiscal 2026. The better decade-long income outcome depends on which dividend growth rate is assumed for each tower REIT.
Crown Castle offers a 6.2% yield versus American Tower’s 4.5%. Its fiscal 2025 dividend was $4.75, down from $6.26, and its current annual rate is $4.25. American Tower’s current annual dividend is $7.16.
American Tower covered 63% of fiscal 2025 AFFO with dividends; Crown Castle used 109%. Consensus for fiscal 2026 is 64% and 93%. Crown Castle’s Q2 2026 AFFO rose to $1.13 from $1.02, but site rental revenue slipped 4% to $967 million amid DISH and Sprint cancellations. Its leverage was 6.51x net debt/EBITDA, with 2.13x interest coverage.
Retirees, pension funds, and other income-focused investors may be affected by these payout differences. A higher yield could attract income seekers, but a stretched payout and heavier debt may raise sustainability concerns. If tower REITs prioritize debt reduction or dividend growth, capital available for network infrastructure could shift, potentially influencing connectivity investment, though outcomes remain uncertain.