Income-focused investors in 2026 are slowly moving into infrastructure stocks linked to data centers because many of them now offer higher yields and steady, long-term contracts. Companies like AES Corporation (AES) stand out as an example here, with a forward dividend yield of about 4.3%, supported by long agreements with big tech players like Alphabet's (GOOG) (GOOGL) Google and other deals tied to data center growth across major U.S. regions.
That trend is being reinforced by another round of big tech spending. Amazon’s (AMZN) plan to invest $25 billion in Mississippi data centers adds more weight to the ongoing buildout of cloud and AI infrastructure. In this setup, another big infrastructure player, American Tower (AMT), plays a slightly different role. It is not just about owning data centers but about providing the tower and connectivity infrastructure that helps those data centers stay connected and run smoothly. The company also pays an annual dividend of about $6.80 per share, which comes out to just under a 4% yield, putting it in the same income-focused group of infrastructure stocks benefiting from this demand.
With hyperscalers still spending heavily and no slowdown in sight, can a stock like AMT turn all this demand into steady income and long-term share gains? Let’s find out
American Tower owns and leases wireless towers and other connectivity assets, and its CoreSite data center business gives it more exposure to cloud and AI traffic.
Over the past 52 weeks, AMT is down about 18%, though it remains slightly positive for the year, up 1.25% year-to-date (YTD).
With a forward P/E ratio of 17x compared to the sector average of 31.82x, the stock looks attractively priced for investors who want steady income at a fair value.
The latest quarter backed that up. Revenue came in at $2.738 billion, up 7.5% year-over-year (YoY), driven by steady leasing demand and continued growth in its data center business. That top-line strength flowed through to profitability, with Adjusted EBITDA at about $1.82 billion, also up roughly 7.5%, showing margins are still holding up. On cash flow, AFFO per share came in at $2.63, beating expectations.
Reported net income was $821 million for AMT shareholders, down sharply YoY due to non-operating items and currency swings. For the full year, revenue reached $10.65 billion, while net income attributable to shareholders totaled $2.53 billion. Free cash flow also stayed strong at $836 million for the quarter, supporting dividends and buybacks. Capital spending was $592 million, and the company also kept full-year AFFO guidance at $10.78 to $10.95 per share, which points to a steady payout base.