10 Dividend Stocks That Will Benefit From 5G

Invest In This Pie

I believe time is money, so I am going to try to keep this article as short as I can. If you can’t read this article within 10 minutes then I failed you as a writer. 5G wireless internet will bring about the fastest mobile internet speeds to date. With this knowledge, I began researching dividend paying companies that would benefit from 5G, and would see its stock price grow over the next 5 to 10 years.

5G Chip Makers

The first companies to benefit from 5G are the chipmakers. Qualcomm (QCOM) and Xilinx (XLNX) are the primary 5G chip makers to benefit from the 5G upgrade of wireless internet. Qualcomm chips will be sold to smartphone makers and Xilinx chips are going into the multiple antenna boxes being sold to cell phone service providers, which will be installed onto cell towers.

5G Infrastructure

This brings us into the next set of companies that will benefit from upgrading to 5G. We have 2 REITs; American Tower Corporation (AMT) and Crown Castle International Corp. (CCI). These REITs are cell tower companies that owns, operates, and leases to major cell phone service providers. American Tower Corporation focus is the large cell towers across the country while Crown Castle International Corp. focus are the small cell towers. This allows both companies to benefit without competing against each other for the same customers since the major telecom companies need more cell towers than currently available for the 5G rollout.

Phone & Telecommunication Services

Out of the 4 major telecom providers AT&T (T) and Verizon Communications (VZ) are the dividend payers. Once the major 4 telecom providers have the 5G network built across the country. We will see their growth as many consumers replace outdated 4G cell phones for 5G cell phones. Which gives us another clear pick in this space; Apple (APPL). The next iPhone is expected to be delayed for the 5G chips from Qualcomm.

This leaves many thinking phone buyers won’t wait for the next iPhone and decide to buy a 5G compatible android phone. If I didn’t know anything about Apple consumers. I would most likely agree with that statement. However, Apple has spent years developing an ecosystem.The very ecosystem that it’s consumers don’t want to leave even with the lack of innovation and ever growing iPhone prices. These people are willing to wait for the next 5G compatible iPhone. This is why Apple is one of the few growth stocks on the 5G dividend stocks list.

Cloud Services

This also got me thinking about which companies would benefit in the coming years even before the 5G network is completely built? The first thing that came to my mind was the business to business companies providing cloud services. While cloud computing services is quickly becoming more of a A.I. war between all of the companies. Each of the companies will benefit from 5G internet speed. So I looked at the cloud service providers and found that Microsoft (MSFT) and IBM (IBM) are the only 2 dividend paying stocks among the top cloud service providers.

Streaming Services

Let’s say we fast forward to the future for a moment and the 5G network is fully built. I ask myself which companies would benefit from consumers using 5G in their daily lives? Streaming service providers to me are the obvious winners of 5G. Apple coming out with Apple TV+ streaming service exclusively providing original shows and Disney (DIS) coming out with Disney+ completely focused on family friendly shows and movies. Apple and Disney are clearly growth stocks that happen to pay a dividend that will benefit hugely from 5G internet speeds.

Final Thoughts

If we placed these 10 dividend paying stocks into a portfolio with each being 10% of the stock portoflio like the image above, the dividend yield would be 2.895%. This gives us a nice starting dividend yield with a lot of room for capital appreciation over the next 5 to 10 years. For a higher starting dividend yield, I would wait for a pullback on the stocks mentioned in this article besides T and IBM. However, I don’t believe in timing the market. A pullback could very well happen but what if it doesn’t happen?

Disclosure!

I am not a CPA nor a financial adviser. I am only sharing my personal opinion from the research I have done. I highly recommend you do your own research on 5G and how these companies would benefit from it before investing any money in the stock market based on this article.

I am long the following stocks; T, VZ, APPL, MSFT, IBM, and DIS.

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