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In uncertain markets, it pays off to look for stable companies with the potential for growth. And if the Federal Reserve makes good on its promise to raise interest rates three times in 2022 after its tapering of QE runs its course, American Tower Corp. (AMT) — our favorite idea for the coming year — will certainly fit the bill.

This phone tower and mobile infrastructure real estate leader is worth owning both on the basis of its dividend yield as well its long-term potential. 

In addition, below the surface, AMT is a rare REIT; one with potential growth based on its business niche; it provides the land for mobile carriers to place their towers — generating income from large, deep-pocketed corporate clients.

And business looks to be in excellent shape, all around the world. In the most recent earnings call, AMT noted the following future expectations:

• Extended multi-year growth based on accelerated expenditures by all carriers in the U.S. as the 5G rollout continues.
• A more rapid growth rate in the near-term in Europe where 5G is set to hit a growth spurt.
• Expanding presence in emerging markets as mobile phone use increases rapidly and there is insufficient infrastructure to service the growing demand.
• Aggressive network capacity expansion by all carriers around the world leading to company building as many tower sites in the next two years as it has built in the last five years.

While those metrics may seem impressive, AMT’s management is expecting that as cloud use emerges, their tower sites will increasingly become not just radio transmission signal sites, but also mobile computing stations able to improve cloud based operations for carriers. And as this develops, it will increase AMT’s revenue and earnings potential.

All in all, with a 5% dividend yield, it may be worth being patient here; even if this stock just marks time for a while. This is especially prescient with the Fed threatening to derail the bull market.