Crown Castle Lowers Dividend By 32%
Crown Castle (CCI) has cut its quarterly dividend payment by 32% as the real estate investment trust moves to sell its fibre business.
Going forward, Texas-based Crown Castle will pay a quarterly dividend to stockholders of $1.0625 U.S. per share, a 32% decrease from the previous dividend of $1.565 U.S.
The stock of Crown Castle previously had a hefty dividend yield of 6.17%.
Crown Castle specializes in providing wireless internet infrastructure and communications. The company owns and manages more than 40,000 cell phone towers and 90,000 miles of cable that supports fibre optics across the U.S.
The dividend cut comes as Crown Castle moves to sell its fibre business, a decision that is likely to reduce the company’s revenue and lead to a smaller business footprint.
In recent quarters, Crown Castle’s financials have been impacted by elevated interest rates and some tenant-related headwinds. The last time the company raised its dividend was in 2022.
During the first quarter of this year, Crown Castle’s operating cash flow declined to $270 million U.S. amid ongoing financial strains and the decision to offload its fibre business.
Crown Castle’s stock will trade ex-dividend on June 13 of this year. The company’s share price has declined 35% over the last five years to trade at $101.52 U.S. per share.
