Over the last few years, several different industries on the TSX have gone through major growth spurts. One of the biggest opportunities that investors had for growth during the last decade was with pot stocks.
Several investors made tonnes of money while pot stocks exploded in value. Because of this, investors are still trying to find profit in the cannabis sector; however, most of the long-term growth potential is baked into share prices now.
There are the arguments to be made that more countries legalizing could help these businesses to grow, and that’s certainly true. However, it’s not worth an investment because of that. Furthermore, there’s nothing proprietary about growing cannabis, and competition is extremely tough.
This doesn’t mean that pot stocks aren’t investible, but you should only bother if you’re going to make a long-term investment and have a true belief in the stocks and sector long term.
Instead, if you’re looking for big gains like the pot stocks used to produce, 5G stocks are your best bet today. Indeed, 5G technology offers several advantages, which is why the full rollout of 5G across economies is so widely anticipated.
Here are three TSX stocks to consider buying today to take advantage of the major 5G growth ahead.
Forget pot stocks: buy this top long-term stock
The first stock to consider is BCE Inc (TSX:BCE)(NYSE:BCE), the biggest and best telecom on the TSX. BCE won’t be a stock for investors looking for massive growth from 5G technology; however, it’s still a great option for several investors.
The company is one of the top core stocks on the TSX and perfect for long-term investors. Its operations are highly resilient, and the company is a major cash cow, which is why it’s such a great core stock for long-term investors.
Currently, BCE’s dividend yields 5.9%, and the Dividend Aristocrat has increased the payout to shareholders each of the last five years for a total of 28%, which makes it the perfect stock to own for a stable income stream.
That dividend growth could increase even faster as BCE’s operations grow rapidly, while 5G technology continues to come online. So although BCE won’t offer massive capital gains potential, it’s a much better long-term investment today especially when compared to a pot stock.
Software security stock
If you want a little more growth potential than BCE, similar to the pot stocks growth back in 2016, investors should consider a top software security stock such as BlackBerry Ltd (TSX:BB)(NYSE:BB).
Since focusing more on its software and less on building phones, BlackBerry has been well known to be one of the world’s top software security companies. The company has continuously improved its software and prepared for the explosive growth that 5G technology will bring to the software security sector.
BlackBerry already serves several companies in several industries, both in the public and private sector. The company operates through three segments. The first is BlackBerry Spark, which offers endpoint protection, such as security for your phone or laptop. The second is the company’s intellectual property licensing segment.
Finally, there’s the BlackBerry IoT Solutions segment, which provides endpoint management, cybersecurity, encryption, and more to the rapidly growing internet of things (IoT) system. The massive growth in IoT is increasing in popularity with the introduction of 5G and represents a major growth opportunity over the long term.
BlackBerry is a tech stock that has struggled over the years, but the stock has hung in there because investors know it has potential. 5G could finally be the catalyst that brings back BlackBerry to its glory days, which is why I’m keeping a close eye on this 5G stock — and is also why BlackBerry has much better potential than a pot stock today.
Bottom line
5G has been creating massive opportunities for investors, whether you buy a safe long-term stock like BCE or a struggling business that could finally turn it around and skyrocket, like Blackberry.
It also offers even higher potential stocks with a bit more risk, just like the pot stocks back in 2016. If you’re interested in buying these, I would take only a small position. Sure, you could make 10 or even 100 times your money, but there’s also considerable risk, too, so you don’t want to put too much on the line.
