The Motley Fool

Growth Investors: 2 Top 5G Stocks on the TSX

Image source: Getty Images

5G has been said to be one of the most exciting technological innovations since the internet. So, naturally, investors will want to find exposure to a high-quality 5G TSX stock.

It already seems like technology can do so much. However, with the introduction of 5G technologies, communication speed is rapidly improving, creating millions of new technological possibilities.

This will not only change the way we live; it will massively increase productivity and create tonnes of new potential.

Naturally, whenever something like this comes along, there will be a tonne of opportunities to make money. However, unfortunately, there will also be lots of investments that don’t pan out.

So, while you may be enticed to choose a lesser-known and higher-potential stock, you should be mindful that it likely has a substantial amount of risk.

Here are two TSX stocks to consider that not only offer major long-term growth with the introduction of 5G but are also reliable companies to begin with.

5G telecom stock

The first way to play the new wave of 5G is through a top blue-chip stock such as BCE (TSX:BCE)(NYSE:BCE). The telecom stocks own the infrastructure that will make 5G possible, so no matter what, these companies will see a big tailwind, as the industry continues to get more and more popular.

BCE is a top choice for a few reasons. Firstly, it’s reliable. The company is a massive business with a huge infrastructure. Furthermore, many of its services are highly defensive, and because it’s a cash cow, it can withstand poor economic periods, like what we see now.

That’s important, because a long-term investment in BCE is almost guaranteed not to lose you your money. It will also give you exposure to a 5.9% dividend. All of those impressive qualities on top of the company’s significant growth potential have made BCE one of the most attractive stocks on the TSX.

Before we even mention 5G potential, it’s worth pointing out that the Canadian wireless market is significantly less penetrated than many of its developed-nation peers.

When you consider that, and the fact that BCE already has an incredibly fast wireless network, and then add the fact that 5G technology is increasingly catching on, it’s clear that the stock will see some significant growth over the next few decades.

While you may not see astronomical growth in the short term from BCE, the stock has many attractive qualities, especially in today’s uncertain environment.

5G tech stock

If you are looking for a stock that still offers reliability but also it considerably more growth potential than BCE, I would consider BlackBerry (TSX:BB)(NYSE:BB).

BlackBerry is a high-quality software security company. This is an industry that’s crucial and continues to get bigger and more important, with all the information and data increasingly being stored online.

BlackBerry is an ideal stock for growth investors, as 5G technology will create tonnes of innovation in the tech sector, especially with the Internet of Things.

Winning contracts from major organizations such as the U.S. Air Force and the U.K. Ministry of Defence shows just how well regarded BlackBerry is in the software security space.

Another attractive feature of the software security business is that almost all of the revenue is recurring. Companies, organizations, and customers will always need security, and, if anything, that recurring revenue will actually be continuously growing. Plus, as of its most recent quarter, the company reported software and service revenue growth of 26% year over year.

Another industry creating a tailwind is the auto industry. BlackBerry’s software is the go-to choice for auto manufactures, which should provide a continual increase in revenue over the next few decades.

Several stocks will benefit from the introduction of 5G, but BlackBerry is easily one of the best.

Bottom line

5G is one of the most revolutionary technologies of our time and one of the best opportunities for investors to grow their capital. So, it’s crucial you find high-quality stocks you can count on to take advantage of the coming 5G wave.

If these stocks still don't have enough growth potential, check out this pick, which could skyrocket massively...

Motley Fool Canada Makes 5G Buy Alert

5G is one of the greatest arrivals in technology since the birth of the internet. We could see plenty of new wealth-building opportunities in 2020 that would potentially dwarf any that came before them.

5G has the potential to radically change our lives and society as we know it, but if you’re an investor, the implications are even greater — and potentially much more lucrative.

To learn more about it and its revolutionary potential to change the industry — and potentially your bank account — click on the link below to get the full scoop.

Learn More Today!

Fool contributor Daniel Da Costa owns shares of BCE INC. The Motley Fool recommends BlackBerry and BlackBerry.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.