12 5G Stocks to Buy and Hold for 10 Years

5G is the latest wireless technology of the present and the road map for the future. Making the interconnectedness between people and technology greater and faster than ever before, 5G significantly accelerates wireless speeds and performance at a rate far exceeding that of its predecessor networks.

Business consulting firm Grand View Research reports that the 5G industry is projected to realize a compound annual growth rate (CAGR) of nearly 44% in the six-year period beginning in 2021 and ending in 2027.

If you want to invest in the 5G market while it's still hot, there's plenty of time to do so. From mobile chipmakers to telecom giants, here are 12 5G stocks you can buy and hold for the next decade.

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T-Mobile (NASDAQ: TMUS) is the second-largest wireless provider in the country. The mobile communications behemoth announced in June that it had partnered with Alaska-based General Communication to further augment its existing 5G network. The landmark partnership made T-Mobile the only U.S. carrier to provide 5G to customers in every state. On Aug. 4, T-Mobile announced that it was launching the first-ever standalone 5G network, increasing the geographic market presence of its fifth-generation technology standard by an astonishing 30%.

Shares of T-Mobile took a dip when the market plunged in March, but they bounced back quickly. The stock is up about 47% year to date. The company reported a healthy 5% year-over-year increase in its service revenue in the first quarter of 2020, which totaled $8.7 billion. In Q2 2020, T-Mobile’s balance sheet reflected $13.2 billion in service revenue with total revenue of $17.7 billion.

ALSO READ: 3 Ways T-Mobile Can Grow Faster Than You Think

Qualcomm (NASDAQ: QCOM) is one of the leading mobile chipmakers in the world. The company stands to profit from the fifth-generation technology craze with its proprietary Snapdragon mobile and compute platforms that drive razor-sharp connectivity on 5G devices.

Qualcomm stock is creeping close to its 52-week high, up roughly 32% from the beginning of the year. The company pays out a modest dividend of 2.2%. In the fiscal third quarter, which concluded on June 28, Qualcomm reported $4.9 billion in revenue, with earnings per share of $0.74, according to generally accepted accounting principles (GAAP).

AT&T (NYSE: T) announced on July 23 that it was expanding its 5G network to customers nationwide, a move to compete with other leading carriers like T-Mobile.

The company has had its fair share of mountains to climb lately, including declining revenue in its wireline and video businesses due to COVID-19. The adverse effects of the coronavirus pandemic were also keenly felt by the company’s subsidiary WarnerMedia, resulting in fewer releases and cuts in advertising revenue over the last few quarters. AT&T shares are down approximately 14% year to date.

Despite notable headwinds, the company has still recorded consistent annual profits in recent years. AT&T’s annual revenues were up 6.4% in 2018 and 6.1% in 2019. In the second quarter just ended, the company reported consolidated revenue of $41 billion, with its free cash flow totaling $7.6 billion. With the ever-expanding rollout of the company’s 5G offerings, AT&T could be poised to regain higher ground over the next few years. The company’s hefty dividend yield of nearly 7% is another big draw for investors willing to ride out the ups and downs of this telecom stock.

Chipmaker NVIDIA's (NASDAQ: NVDA) computing platform seamlessly integrates with fifth-generation wireless technology and represents a less-talked-about side of this industry market -- 5G infrastructure investing. While stocks across many industries have dealt with unprecedented volatility since the spring bear market plunge, NVIDIA stock keeps rising higher and higher. In fact, shares of the company are up 119% year to date.

The company’s balance sheet is stronger than ever. In the first fiscal quarter of 2021, which ended on April 26, NVIDIA reported a 39% boost in its revenue to $3.08 billion. During fiscal Q2 2021 ended July 26, NVIDIA saw a 50% increase in revenue compared with the second fiscal quarter of 2020. NVIDIA issued $99 million in dividend payouts out of its total $3.87 billion revenue from the fiscal Q2.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Definitely not your typical 5G stock, Crown Castle International (NYSE: CCI) is structured as a real estate investment trust (REIT). It controls the single largest network of shared communications infrastructure in the country, with more than 40,000 cell towers and 80,000 route miles of fiber in its portfolio. The REIT has a total enterprise value of roughly $87 billion. Crown Castle's portfolio of specialized communications infrastructure assets make it ideally positioned to gain as the 5G footprint expands.

During the six months ending on June 30, Crown Castle amassed net revenue of $2.6 billion, up slightly from the $2.5 billion it reported during the first half of 2019. In the company's Q2 report, Chief Executive Officer Jay Brown said, "We continue to anticipate a significant increase in industry activity in the second half of this year as our carrier customers invest to improve their existing networks and as 5G investments ramp." Crown Castle pays a dividend yield of 2.9%.

ALSO READ: Where Will Crown Castle International Be in 10 Years?

Swedish telecommunications giant Ericsson (NASDAQ: ERIC) is on the cutting edge of wireless technology with its 5G platform. The company announced on Aug. 12 that it had secured its 100th commercial 5G contract with service providers. Ericsson’s 5G presence now extends to five continents.

Ericsson stock is up approximately 30% year to date and is still extremely cheap. You can purchase one share for about $11.

The company reported its financial results for the second quarter of 2020 on July 17. Sales in the quarter totaled 55.6 billion Swedish krona (SEK), which translates to roughly $6.4 billion as of Aug. 28. Ericsson reported a gross margin of 38.2% in Q2 2020, with net cash totaling SEK 37.5 billion at the close of the quarter.

Dell Technologies (NYSE: DELL) has proffered its cloud services and infrastructure technology to assist companies like AT&T with the shift to 5G. The stock has made a steady ascension from its March lows and is now up about 27% from its Jan. 2 closing price.

Dell reported $21.9 billion in revenue fiscal Q1 2021, with a 28% increase in its operating income. In the company’s results for the second fiscal quarter of 2021, which it reported on Aug. 27, Dell noted total revenue of $22.7 billion, with a 119% year-over-year increase in operating income.

In Dell’s fiscal Q2 2021 earnings call, Chief Operating Officer and Vice Chairman Jeff Clarke commented, "We have a history of investing in new businesses and technology solutions that layer into our portfolio and spur growth. Emerging technologies around widespread connectivity with 5G, data-driven insights at the edge and expanding workloads in a hybrid cloud future will each create opportunities for long-term growth...."

As a leading electronic payments processing provider, Visa (NYSE: V) is well positioned for growth as the implementation of 5G grows across the nation and throughout the rest of the world. With the advent of this new wireless technology, consumers will find that making digital payments is faster and easier than ever before.

Visa has held its own amid considerable pandemic headwinds. Up 13% from the start of the year, shares slid in the middle of March but have maintained a slow and steady upward trajectory since April.

During the third fiscal quarter, which ended on June 30, Visa saw a 17% drop in revenue to $4.8 billion, due to a reduction in the volume of payments processed on its platform. Despite a 13% decline in transactions processed by Visa, the company still reported nearly 31 billion transactions on its platform in the third fiscal quarter.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

If you haven’t heard of SBA Communications (NASDAQ: SBAC) before now, you’re not alone. With a more than $34 billion market capitalization, this stalwart has reaffirmed its large-cap status in the uncertain coronavirus stock market.

Similar to Crown Castle, SBA Communications is a REIT that leases and develops wireless infrastructure. Its portfolio includes a range of assets pertinent to the 5G space, including small cells and distributed antenna systems. SBA Communications reported revenue up 4.8% in Q1 ($517 million) and 1.4% in Q2 ($507.2 million). In the second quarter of this year, the company saw a 14.8% increase in adjusted funds from operations (AFFO) per share.

ALSO READ: Better Buy: Crown Castle International vs. SBA Communications

Microchip Technology’s (NASDAQ: MCHP) primary contribution to the 5G space is its range of synchronization products. Because of the company’s multifaceted portfolio and corner in the Internet of Things (IoT) solutions space, it appears ready to meet the changes that 5G technology has and will bring to the modern world.

The company has a market capitalization of about $28 billion and pays a dividend with a yield of 1.3%. Microchip Technology reported net sales of $1.3 billion in the fiscal first quarter of 2021 ending June 30, along with $501.8 billion in cash flow. The company has also been actively working to reduce its debt ratio, having paid off $394 million in the first fiscal quarter alone. As of June 30, the company had $2.6 billion in outstanding liabilities on its balance sheet.

Semiconductor and infrastructure software giant Broadcom (NASDAQ: AVGO) has been one of many chipmakers to make its mark on the world of 5G. One such example is the agreement Broadcom inked with Finnish Nokia in June to become one of the telecom company's 5G chip providers.

Broadcom hasn't been immune to the market effects of the coronavirus. That being said, it's managed to stave off any truly detrimental impact from the pandemic on its balance sheet. In the second quarter of fiscal 2020 ending on May 3, the company achieved $5.7 billion in revenue, a 4% year-over-year increase. The company also pays a dividend, yielding a robust 3.8%.

Last but certainly not least on our list is Lumentum (NASDAQ: LITE). The company manufactures telecommunications equipment, and its photonics and fiber-optic products play a vital role in helping carriers with the rollout and performance of 5G technology.

On Aug. 11, the company released its financial results for the full fiscal year 2020 (ending June 27). Net revenue in fiscal 2020 came to $1.7 billion, representing a 7.2% increase in revenue from fiscal 2019. Chief Executive Officer and President Alan Lowe stated in the company's earnings report, "We head into fiscal 2021 with demand increasingly driven by new products and technologies, strengthened market positions, and an improving financial model with accruing benefits from acquisition synergies." The company is projecting net revenue for the fiscal Q1 2021 to hit somewhere between $430 million and $455 million.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

As the deployment of 5G rapidly increases, the companies providing the infrastructure, chipsets, tower sites, antenna systems, fiber optics, and other pertinent solutions to support these networks will benefit significantly from the widely anticipated success of this new technology standard. Companies that have a well-established portfolio of products and a definitive stake in the 5G rollout can help to diversify your existing basket of stocks.

The 5G market is anticipated to hit a $41.5 billion valuation in 2020 alone. These companies capitalizing on the 5G boom make compelling value plays for long-term investors seeking new opportunities in the coronavirus stock market.

Rachel Warren has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Crown Castle International, NVIDIA, Qualcomm, and Visa. The Motley Fool recommends Broadcom Ltd, Lumentum Holdings, and T-Mobile US. The Motley Fool has a disclosure policy.