Five Ways to Invest in 5G Future

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Five Ways to Invest in 5G Future
Five Ways to Invest in 5G Future

Five ways to Invest in 5G Future

In my previous blog, I have talked about 5G technology and 5G work. In this blog, I will talk about five ways to Invest in 5G Future.
Importantly, 5G will also extend mobile connectivity beyond traditional mobile devices, like cell phones and tablets. The next few years will usher in a brand new version of what a connected world looks like.
The move to 5G will create huge opportunities for many companies. Investing in pure plays levered to a growth theme is tricky, though, due to execution and valuation risk.
If you value risk-adjusted returns as I do, here are five companies with proven business models that should do even better as 5G rolls out. Following are the Five Ways to Invest in 5G Future:

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1.Cell Tower Landlords
This refers to companies like American Tower, Crown Castle, and SBA Communications, all of which are real estate investment trusts (REITs). They rent out space on cell towers to cellphone carriers to mount their antennas, small cells, and other wireless equipment Crown Castle International is a REIT that owns, operates and leases cell towers and other infrastructure for wireless communications. Tower and fibre network operators will be among the early beneficiaries of 5G, as telecom carriers upgrade their network coverage and capacity.Crown Castle has a 3.5% dividend yield and trades at 22.3 times estimated FFO. Five Ways to Invest in 5G Future

2.Cell phone carriers
Cell phone carriers are expected to enjoy sustained enhanced profits from the introduction of 5G because customers will have to pay more for services. Verizon is among cell phone carriers.
Verizon is focused mainly on 5G to drive its next leg of growth. The stock was stuck in a trading range between $45 and $55 from 2013 through 2018. Currently, at $61, Verizon looks like a breakout candidate. Shares trade at 14 times free cash flow with a 6.1% shareholder yield.


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3.Core technology companies
Core technology companies include companies manufacturing or enhancing core wireless networking technologies for 5G, such as semiconductor manufacturers, cellular networking and satellites, hardware and software, enhanced mobile broadband modems, and new radio technology. These companies include Skyworks Solutions, Qorvo, and Qualcomm. Qualcomm is highly profitable with operating margins of 35% and ROIC of 40%. Shares trade at 16 times free cash flow with a 5.0% shareholder yield.

4.Smartphones, wearables, and home technology companies
There are several companies that sell smartphones, wearables, and home technology, but none of them matches up to Apple. Apple to profit from 5G is a smart idea because you are investing in one of the best management teams, corporate employers, and technology innovators in the world, with eye-popping profitability and a fortress-like balance sheet

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5.Jack of all trades and master of them all
NVIDIA is one of the most respected technology companies in the world today and is in the list of Five Ways to Invest in 5G Future, pioneering technologies necessary to transform science fiction into reality.These telecom companies can use the same computing infrastructure required for 5G networking to provide AI services for smart cities, smart factories, smart healthcare, augmented reality/virtual reality (AR/VR), and cloud gaming.

I hope you like the blog, Five ways to Invest in 5G Future.

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