"5G" is the next generation of mobile network technology that will make data delivery 100 times faster than 4G.
And there's no doubt 5G stocks will create a lot of winners over the next decade.
Swedish networking equipment maker Ericsson (NASDAQ: ERIC) estimated in a 2017 study that new 5G-based opportunities could generate as much as $1.3 trillion in additional annual revenue by 2026 just for carriers.
And to help our readers identify clear-cut winners, we are providing this in-depth guide on how to find the top 5G stocks to buy in 2019.
To make sure you're fully prepared to take advantage of this opportunity in front of you, we're going to answer our reader's top questions about 5G technology and 5G stocks.
Here's everything you need to know about this $1.3 trillion opportunity...
What Are 5G Stocks?
The "G" in 5G stands for the generation of wireless technology.
And this new generation of wireless technology will have three distinct advantages over its predecessors, which includes:
- Greater speeds
- Lower latency (minimal delays in data processing)
- Ability to connect more devices
And this type of technological advancement will be critical for budding industries like autonomous vehicles.
To safely navigate traffic, self-driving cars will need to "talk" with each other by sharing information. That type of constant back and forth will require a network like 5G that can support the instant exchange of data.
The potential new uses for 5G networks could add nearly $1 billion in growth to carriers over the next decade too...
Autonomous vehicles can't have delays in processing data because it could result in devastating accidents.
That's why 5G is so important.
Of course, what most of our readers are wondering is if 5G technology will work on their current iPhones...
Will 5G Work on the iPhone?
Apple isn't rushing to make a 5G phone, and it could take until 2020 for Apple to make a 5G iPhone.
Right now, the cost of making one isn't worth it to Apple. The cost of licensing 5G technology for a single smartphone is over $21, according to VentureBeat. In comparison, the average cost for licensing a 4G device is just $9.60.
Nokia, Ericsson, and Qualcomm Inc. (NASDAQ: GS) will be the biggest players in 5G licensing, and they are operating within FRAND (Fair, Reasonable, and Non-discriminatory) terms.
With Apple missing iPhone sales estimates for Q4 2018 (46.9 million sold versus expectations of 48.4) billion, Apple needs to squeeze every bit of profit it can out of the phones it does sell.
Spending more to license 5G technology doesn't fit its cost-cutting efforts right now.
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But even if iPhones aren't ready to support 5G right now, there's no denying the profit opportunity.
That's why Money Morning readers have been asking how to get in on this ground-floor opportunity...
How Do I Invest in 5G Stocks?
Finding a broker - the right broker, one that's capable of handling each of your particular needs - requires a variety of considerations.
Everything from account minimums, acceptable trade types and commissions fees, to trading platforms, customer service availability, and regulatory standing.
The best option, of course, depends on what's important to you.
For transaction-free trades, Robinhood is an excellent option. You won't owe commissions on any stocks you buy or sell.
But unfortunately, you can't reinvest dividends on Robinhood right now, which means you can't take advantage DRIPs (dividend reinvestment programs) for 5G stocks.
We have a list of other brokerage firms below that aren't recommendations. Rather, these are popular options for investors looking to open accounts with low minimums and low trading fees.
| Brokerage | Website | Minimum to Open | Trade Fees |
| Charles Schwab | Schwab.com | $1,000 | $4.95 |
| Fidelity | Fidelity.com | $0 | $4.95 |
| TD Ameritrade | TDAmeritrade.com | $0 | $6.95 |
Once you set up a brokerage account, this is a list of the 5G stocks you need to know about in 2019...
5G Stocks to Watch in 2019
As Money Morning Associate Editor David Zeiler said on May 9, 2018, the obvious stocks to buy in this market are big U.S. carriers: AT&T Inc. (NYSE: T), T-Mobile U.S. (NASDAQ: TMUS), and Verizon Communications Inc. (NYSE: VZ).
AT&T plans to bring 5G to at least 19 cities in early 2019, according to its website.
T-Mobile planned to build out 5G in 30 cities in 2018, and Verizon turned on 5G services in Houston, Indianapolis, Los Angeles, and Sacramento on Oct. 1, 2018.
AT&T and Verizon also pay dividends, which is a nice bonus for shareholders while they wait for the share price of each stock to appreciate from the 5G revolution.
However, we uncovered the best way to play this booming industry thanks to the Money Morning Stock VQScore™.
Derived from our proprietary valuation system, it gives you a distinct advantage when you buy or sell a stock.
A VQScore of 4 or higher puts a stock in the "Buy Zone." These stocks have the highest breakout potential.
And the 5G stock that popped up on our screener is going to be a clear-cut winner in a market that could generate as much as $1.3 trillion in additional annual revenue for carriers by 2026...
The Top 5G Stock to Buy in 2019
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The top 5G stock to buy in 2019 is Canada-based Telus Corp. (NYSE: TU).
Teleus provides everything from dial-up phone service to Internet access, and the telecommunications company claims to have the fastest wireless network in Canada.
And the company's growth is impressive...
The company has seen steady revenue growth of single-digit percentages every year in the past decade, and it added 135,000 wireless, Internet, and TV customers in Q2 2018.
Plus, Telus already has a leg up on the completion of its 5G network...
The higher speed and shorter range of 5G technology requires an extensive infrastructure of fiber-optic cable and a large distribution of smaller transmitters.
"Telus management had the foresight to embark on its generational fiber and small cell investment even before 2015," Scotia Capital analyst Jeff Fan wrote in a research report earlier in 2018.
Now, we don't expect to see any profit windfalls from 5G until late 2019 or early 2020.
But in there are two great reasons to buy shares of Telus right now.
The first is Telus pays a dividend of $1.66, which is a yield of 4.78%. The company is paying you to hold its stock while it becomes a leader in 5G.
The next reason to buy shares of Telus is because of the stock price appreciation.
"Current FactSet projections put Telus' earnings per share at $2.48 in 2020. At a price/earnings ratio of 19 (about where it is now), that makes the TU 2020 price target $47.12. That's a 33% gain from the current share price of $35.28 - a nice pop for a telecom stock, and likely just a taste of the fat returns that 5G will bring," Zeiler said on May 9.
The Bottom Line: The advancement of 5G technology is expected to add $1.3 trillion in additional annual revenue by 2026 just for carriers. There's several ways to play this emerging market, but the best is Telus Corp. (NYSE: TU).
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