The 5G revolution is upon us. We could be talking about network speeds up to 100 times faster than 4G.
But significantly faster speeds is just the beginning. Soon, cars, appliances, computers, smartphones, and even entire homes will all be connected and communicating with one another.
This promises to bring about massive changes. What else does it promise to bring about? Money. A lot of money. And that’s exactly where investors want to be.
However, a lot of 5G tech stocks have sky-high valuations and don’t offer any income.
What if you want to get a good deal on a 5G stock, sleep well at night, and collect safe and growing passive dividend income?
Well, that’s what today’s video is all about. I’m going to show you three high-quality dividend growth stocks that are also 5G plays.
Let’s dig in.
5G Dividend Stock #1: Broadcom (AVGO)
The first stock I want to talk to you about is Broadcom Inc. (AVGO). It’s one of the largest semiconductor companies in the world.
If you want to invest in 5G, you’ve gotta own at least one chip company. And Broadcom is one of the best out there.
We put together a video analysis on Broadcom back in the summer when it was still around $300/share, concluding that it was significantly undervalued at the time.
This 5G chip stock has gone on a huge run since then, but it still offers a market-beating yield of 3.3%.
Better yet, that dividend is regularly growing. In fact, they handed out a 10.8% dividend increase back in December, which marks 11 consecutive years of dividend increases.
And that’s supported by impressive underlying business growth, as our video went over. Furthermore, Broadcom just reported Q4 and full-year 2020 results. Their Semiconductor Solutions segment showed massive 17% YOY growth – and 5G is barely getting warmed up.
Don’t leave this stock off your list if you’re looking to invest in 5G.
5G Dividend Stock #2: Crown Castle International (CCI)
The next stock? Crown Castle International Corp. (CCI).
This stock offers a a very, very interesting way to play 5G. It’s a real estate investment trust that owns thousands of cell towers and thousands of miles of fiber supporting small cells.
See, all of that 5G mobile data has to travel from point to point via waves. That’s where these cell towers come in. 5G doesn’t really work without this company’s real estate, which means reliability and tons of growth potential.
Speaking of which, this company grows like clockwork. They delivered 19% YOY growth in their AFFO/share for FY 2020 – during a pandemic.
You know what else is growing? Their dividend.
They handed out a near-11% dividend increase to shareholders back in October, their 7th consecutive year of dividend increases. And that dividend growth comes on top of the stock’s current yield of 3.6%.
This stock offers a safe, growing dividend and a great way to play 5G.
5G Dividend Stock #3: Verizon Communications (VZ)
The last stock I want to tell you about is Verizon Communications Inc.(VZ).
You’ve heard of Verizon. It’s one of the largest telecommunications conglomerates in the world. What you may not have heard is that this is a straight shot to 5G. All of those smartphones? Yeah, they don’t really work without a network connection.
As one of the biggest providers of such a network, Verizon is making money hand over fist. We’re talking over $23 billion in free cash flow last year.
Perhaps that’s what attracted Warren Buffett, who recently splashed out more than $8 billion in capital to hoover up Verizon stock.
That kind of cash flow allows Verizon to pay out a large, safe, growing dividend.
They’ve increased their dividend for 16 consecutive years. They won’t knock you dead with their 10-year dividend growth rate of 2.6%, but the stock does offer a market-smashing yield of 4.5%.
This stock allows you a low-risk, high-yield way to play 5G. Plus, you’d be doing it alongside Buffett. I’d say that’s not a bad way to go.
Jason Fieber
P.S. If you’d like access to my entire six-figure dividend growth stock portfolio, as well as stock trades I make with my own money, I’ve made all of that available exclusively through Patreon.
