This Stock Turned $1,000 Into $45,007 Over the Past 20 Years. Here's Why It's Not Too Late to Buy

SBA Communications Corporation SBAC is one of the world’s largest owners and operators of wireless communications infrastructure, including towers, buildings, rooftops, distributed antenna systems, and small cells. As of June 30, its portfolio consists of 39,744 communication sites located across 15 markets in the Americas, Africa, and the Philippines.

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If You Bought SBA Communications Stock 20 Years Ago

The company's stock traded around $5.19 per share 20 years ago. If you had invested $1,000, you could have bought approximately 193 shares of SBA Communications stock. Currently, shares are trading at $219.49, which means your investment's value could have soared to $42,291 due to stock price appreciation. But wait, the company also paid dividends during these 20 years. 

SBA Communications’ dividend yield is currently 1.79%. Over the last 20 years, it paid around $14.10 in dividends per share, which means you could have made $2,716 from dividends alone. 

Summing up $42,291 and $2,716, we end up with the final value of your investment, which is $45,007. This is how much you could have made if you had invested $1,000 in SBA Communications stock 20 years ago. This means a total return of 4400.7%. In comparison, the S&P 500 total return for the same period is 571.73%.

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What Could The Next 20 Years Bring? 

SBA Communications has a consensus rating of Outperform and a price target of $288.54 based on the ratings of 26 analysts. The price target implies more than 31% potential upside from the current stock price.

Earlier this month, according to our Benzinga Pro report, two analysts raised their price targets on SBA Communications. Deutsche Bank increased its target to $240 from $230, reiterating its Buy rating, while RBC Capital raised the target to $245 from $235, maintaining its Outperform rating. 

On July 29, the company reported its Q2 2024 earnings results, posting adjusted funds from operations (AFFO) per share of $3.29, slightly beating the consensus estimate, as reported by Benzinga.

The results reflected a decent improvement in site leasing revenues. It continues to benefit from the addition of sites to its portfolio. However, lower revenues posted by site development hurt the results to some extent. Quarterly total revenues decreased by 2.7% year-over-year to $660.5 million, missing the consensus estimate of $664.5 million.

The company lowered its 2024 outlook, now expecting AFFO per share in the $13.06-$13.43 range, down from the prior guided range of $13.09-$13.46. Further, adjusted EBITDA has been decreased from $1,889-$1,909 million to $1,876-$1,896 million.

Given the historical stock price appreciation and expected upside potential, growth-focused investors may find SBA Communications stock attractive. Furthermore, income-focused investors can benefit from the company's consistent dividend hikes. SBA Communications has raised its dividend consecutively for the last five years.

Check out this recent article from Benzinga for two more REITs that offer high dividend yields. 

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