The 3 Must-Own Stocks for the 5G Infrastructure Boom

Stocks to buy

The 5G market is booming. In fact, according to Statista, global 5G subscriptions are expected to more than double and pass a billion this year alone.  Gartner (NYSE:IT) says 5G infrastructure spending could increase about 22% this year to more than $23 billion globally. According to ReportLinker, the 5G infrastructure market could be worth $231.4 billion by 2030.

Plus, according to IT World Canada, about 2,500 cities across 92 countries have commercial 5G networks.  Another 23 countries have pre-commercial trials.  Another 32 countries have announced their 5G intentions. While that’s happening, the Biden Administration is already going after 6G technology in an effort to beat China. All of that potential growth is great news for 5G infrastructure stocks, such as:

First Trust IndXX NextG ETF (NXTG)

Source: First Trust

Since bottoming out at $54.30 in October, the First Trust IndXX NextG ETF (NASDAQ:NXTG) exploded to $66.64—and could still see higher highs. Its 101 holdings are comprised of top tech names, such as NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Arista Networks (NYSE:ANET), and Apple (NASDAQ:AAPL) to name a few. The NXTG ETF also yields 2.07% and has an expense ratio of 0.70%, which means that $7 is collected annually in management fees, per $1,000 invested. The fund invests in the stocks of companies with a market cap of at least $500 million that are helping to develop and deploy 5G technology.

Defiance 5G Next Get Connectivity ETF (FIVG)

Source: Shutterstock

With an expense ratio of 0.30%, the Defiance 5G Next Get Connectivity ETF (NYSEARCA:FIVG) offers exposure to a full range of 5G technology that will support millions, if not billions of devices connected with each other.  Some of its top holdings include Advanced Micro Devices, Analog Devices (NASDAQ:ADI), NXP Semiconductors (NASDAQ:NXPI), Marvell Technology (NASDAQ:MRVL), and Verizon (NYSE:VZ) to name a few.  While its chart has certainly seen better days, give the ETF time to recover and move.  I’d like to see the FIVG ETF run back to $36 again soon.

American Tower (AMT)

Source: SERDTHONGCHAI / Shutterstock.com

American Tower (NYSE:AMT), which owns and operates 225,000 cell towers worldwide, recently announced that its board of directors declared its quarterly cash distribution of $1.56 per share, payable on April 28, 2023, to the holders of record at the close of business on April 14, 2023.

It’s also still growing rapidly.  For the full-year 2022, for example, revenues were up 14% to $10.7 billion. Property revenue was up about 15% to $10.47 billion.  For the fourth quarter, revenue was up 10.6% to $2.7 billion. Property revenue was up 11.2% to $2.64 billion. According to CEO Tom Bartlett, “We closed out 2022 with another quarter of strong performance, including double-digit AFFO per Share and common stock dividend growth. In 2023, we expect to continue leveraging our global portfolio of communications infrastructure to benefit from ongoing carrier network investments, including record organic new business growth contributions in the U.S. and Canada.”

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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