Top Canadian 5G Stocks to Be Looking at for December 2024

5G (Fifth Generation) is causing a stir in Canada; you surely wouldn’t want to miss out on this technology. This could potentially be the subsequent major investment theme.

Let’s take a closer look at three top Canadian stocks that will have significant exposure to 5G over the next few years. Of note, Sierra Wireless used to be on this list. However, in September of 2022, it was acquired by Semtech Corporation.

What are the best 5G stocks in Canada?

• BlackBerry (TSX:BB)
• Rogers Communications (TSX:RCI.B)
• Telus (TSX:T)

1.BlackBerry (TSX:BB)

BlackBerry (TSX:BB) could benefit from an upcoming 5G revolution in a few ways.

But first, the one way it won’t benefit. Despite making its name selling smartphones — and, for a while, owning pretty much the whole market, at least until the iPhone was introduced — BlackBerry is no longer in the phone business, telling users and wireless carriers in 2022 that it was officially getting out.

It had been diversifying away from smartphones for years, choosing instead to focus on software that focused on things like cybersecurity, automotive safety, and the Internet of Things (IoT).

One example is the company’s self-driving car software division, which continues to be tested at the company’s Autonomous Vehicle Innovation Centre, as well as on real roads in the Ottawa area. The software is still in its infancy and is years away from mass market adoption, but it would represent very real usage potential for 5G.

BlackBerry has other divisions that will benefit from full-scale 5G rollouts. The company is well-known as a security expert, and these networks must be protected from bad guys. It also benefits from helping companies secure their own 5G-connected devices.

The company has also expanded into making software for smart devices. One big part of that business is the auto industry, with BlackBerry’s QNX software powering many in-vehicle entertainment systems.

There’s potential to grow this part of the business significantly if ultra-fast 5G networks make it easy for machines to talk to each other.

The company signed a global multi-year deal with Amazon Web Services in 2021 to continue designing its Blackberry IVY system, which will revolutionize how auto manufacturers distinguish automobile data.

Unfortunately, this stock was hit hard by the “meme stock” craze. It ballooned before cratering in value. It also recently announced it would replace longtime CEO John Chen, which could give the share a boost. It could very well be an interesting play for Canadians who want to invest in 5G wireless technology.

2. Rogers Communications (TSX:RCI.B)

Is Rogers (TSX:RCI.B) the best telecom option here in Canada? No, I prefer Telus. However, there is no doubt the company is one of the most attractively valued telecoms in the country right now due to its poor performance over the last few years.

That, and the fact it arguably has the highest exposure to 5G here in Canada with its wide coverage and infrastructure. These factors put it firmly on this list of top 5G options.

The company now provides 5G service to over 2,200 communities and more than 31 million Canadians from coast to coast. It currently provides more 5G coverage than any other mobile network. Rogers also boasts that its network is not only faster but also more reliable. 

Rogers invested in 5G 3500 MHz, which is a mid-band spectrum of the 5G network that is anticipated to deliver faster speeds and up to 50% more capacity so you can stream seamlessly and connect more devices in crowded spaces. Think of it as more lanes on a highway to be able to handle more traffic.

The company has also started to roll out 5G roaming, meaning you’ll access 5G not only here in Canada as a Rogers customer but in the United States as well.

Rogers is part of the Big 3 telecom companies here in Canada, which form one of the strongest oligopolies outside of the railways. Rogers, Telus, and BCE control over 94% of the market share here in Canada, including many smaller subsidiaries that provide alternative services.

Rogers was poised to acquire Shaw’s wireless division when it purchased Shaw Communications in 2023, but as part of the deal, it was required to divest those assets.

They were sold to Quebecor, which is now poised to expand its Videotron wireless service from Quebec across Canada, undercutting the Big 3 in an attempt to gain market share. 

Rogers has been criticized for many years after deciding to stop growing its dividend and instead focus on internal growth. But there is no doubt its investments in 5G technology could provide outsized returns moving forward.

3. Telus (TSX:T)

Canada’s wireless providers will obviously be the real winners in a world where new 5G technology is widely adopted. I’m naming Telus (TSX:T) as our top Canadian 5G stock pick.

Telus (along with its competition) has invested aggressively in 5G equipment to upgrade its existing network.

Although Rogers Communications (TSX:RCI.B) beat Telus by activating parts of its 5G network in 2020, Telus is not far behind.

Telus is a top pick in Canadian telecom for a few different reasons. Firstly, it has strength in Western Canada — specifically Alberta and British Columbia — and has successfully leveraged this to become one of the top wireless players nationwide. 

It also partnered with BCE to combine forces on the network side. This strengthens both by giving their customers excellent coverage, and it helps them save a little cash by sharing the responsibility to roll out expensive 5G coverage in more remote areas. 

Telus shareholders have been treated to consistent dividend raises for more than a decade now. These raises, which have averaged between 7% and 8% annually, pair quite well with Telus’s generous dividend yield. Telus is the top pick for many dividend investors, even those who aren’t the least bit interested in 5G. 

Ultimately, Telus is not only a 5G play. It offers other perks like a high-quality brand, low customer churn, dependable recession-resistant revenue, and a nice dividend.

The bottom line on Canadian 5G stocks

We’ve essentially maxed out what 4G wireless networks are capable of. 4G technology can play videos, load Facebook, and do a lot of other things, but it’s not very useful for the next generation of technology. We need faster speeds for true innovation tomorrow.

A world powered by 5G has the potential to be a revolutionary place. And whether you’re just learning how to buy stocks or a seasoned veteran, you likely want a piece of the pie.

Self-driving cars and drones can zip about, using wireless signals to both get where they’re going and avoid each other. Remote health care will be much easier with ultra-clear video between you and your doctor.

The Internet of Things will allow numerous smart devices to communicate with each other, making overall commerce much easier. Heck, even smart cities will emerge, technological marvels that will change our lives in countless ways.

No wonder so many Canadian investors are excited about 5G stocks. This could prove to be one of the best growth opportunities in the entire market over the next decade or two, and they may be some of the best Canadian stocks to buy.

Telus looks poised to deliver solid returns without much downside risk. That’s why it topped this list. Investors looking to take more risk in exchange for a better potential reward might want to look at BlackBerry or Rogers. If either of these companies takes off, their depressed shares could quickly increase.

Canada lacks 5G options compared to the States, but we still have some

Canada doesn’t have much of a tech sector, but it has a handful of 5G stocks that can make a difference in your portfolio. Stick with these names if you’re looking for a way to play the sector.

However, there is not much choice when it comes to Canadian 5G stocks. If you want the heaviest exposure to 5G, you’ll likely want to look south of the border. Some potential companies to investigate there?

• Verizon Communications
• Qualcomm
• Apple
• AT&T
• Nokia

However, we do have plenty of companies up here in Canada that do have some exposure to the booming industry, whether it be supplying and manufacturing equipment, wireless communications, building infrastructure, or providing services.