This story was originally published here.
One of the big investment themes for the coming decade is related to 5G. And this movement could mean great things for 5G stocks.
The global 5G services market is expected to grow at a constant annual growth rate (CAGR) of 43.9% between fiscal year 2021 and FY2027. Furthermore, the 5G infrastructure market is expected to grow at a CAGR of 29% through FY2026.
Looking at the broader picture, 5G is likely to enable $13.2 trillion in global economic output by FY2035. Given the growth potential, there will be attractive investment opportunities in the industry.
With all of that in mind, this column will discuss some of the lesser known 5G stocks that have made inroads in the industry. I believe that these 5G stocks have the potential to create value with a long-term investment horizon.
Let’s dive into these three 5G stocks.
Lesser-Known 5G Stocks: Crown Castle International (CCI)
In an interesting podcast, Wharton’s Kevin Werbach and Jeffrey Reed from Virginia Tech opined the following:
“Telecom companies and other providers will have to invest billions to make 5G a reality — not only to buy more spectrum, but also to build out the infrastructure.”
Furthermore, with China outspending the United States on 5G network infrastructure, its likely that there will be a surge in infrastructure outlays.
That said, this makes Crown Castle International an interesting 5G stock to consider. The company has a portfolio of 40,000 towers, 70,000 small cells and 80,000 route miles of fiber.
So as 5G infrastructure spending ramp-up in the coming years, the company stands to benefit. In comparison, several major players like Verizon (NYSE:VZ), AT&T (NYSE:T) and T-Mobile (NASDAQ:TMUS) have already committed to build strong 5G networks in the coming years.
From a cash flow perspective, Crown Castle has $25 billion in contracted lease payment from top U.S. wireless carriers. In turn, this provides clear cash flow visibility in the coming years. This is an important point to mention as CCI stock currently has a forward dividend of $4.80. The current pay-out is likely to sustain and potentially increase in the coming years.
While stocks like Qualcomm (NASDAQ:QCOM) and Ericsson (NASDAQ:ERIC) have been in the limelight, CCI stock is worth considering in the 5G space.
Editor's Note: Click here to keep reading.
65 Unique Ways ANYONE Can Make Extra Cash (Without Getting a Second Job)
Are you looking for great sources of real income, without having to get a second job?
Then keep reading, because author Neil George wants to send you his new book that profiles 65 simple ways to earn large amounts of work-free income.
…extra cash that you can collect ON TOP of your Social Security check…
…without messing around with crappy jobs. (Pizza delivery driver? No way.)
These are PROVEN cash-gushing strategies… the kind typically used by the wealthy elite.
And the best part…
Neil George has set aside copies of his book, Income for Life, and he’s willing to send you a hardback version today, ABSOLUTELY FREE (just pay shipping).
(Just 517 copies left, so click here to claim yours before it's ripped away.)
Here's just a sample of what you can find inside:
- Learn the secret of the $50,000 lump sum Social Security check. Seriously, it couldn’t be easier!
- Use what Neil calls the “F.H.A. Loophole” to get the government to pay your mortgage – PLUS receive hundreds in extra cash on top.(Page 217)
- Collect $100s for pictures in Old Family Photo Albums! Believe it or not, there is an easy way to turn your old artwork/photographs into $100 bills (certain businesses are desperate). (Page 297)
- Get paid every time your favorite song gets played on the radio! This little-known website allows you to tap into royalty payments every time your favorite song is played on the radio. Some lucky folks collect thousands of dollars a year! (Page 307)
- Pocket upwards of $197 PER HOUR simply by taking a walk through the woods in the fall… or $137 while visiting your favorite beach in the summer… and many, many more!
Needless to say, this book has become highly sought after.
So if you don't claim your free copy of Income for Life today, we'll send it to the person behind you in line…
