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Five Marijuana Stocks That Pay Dividends
- Altria Group (NYSE: MO)
- Scotts Miracle-Gro (NYSE: SMG)
- Innovative Industrial Properties (NYSE: IIPR)
- Compass Diversified Holdings Inc. (NYSE: CODI)
- AbbVie Inc. (NYSE: ABBV)
A quick glance at the list above and you probably already know these aren’t the pot stocks capturing the imagination of young investors. But those looking for stability need look no further than the performance of these marijuana stocks that pay dividends.
From One Vice to the Next
Altria is best known as one of the world’s largest producers of tobacco. But it’s quickly becoming one of the most influential cannabis companies, too. It owns a huge stake in a multinational marijuana company. And more recently, it’s been successfully throwing around its weight to lobby for marijuana legalization.
The maker of Marlboro cigarettes has a lot of exposure to the marijuana industry. And it’s in a position to benefit handsomely. But the real reason this marijuana dividend stock is so appealing is because it’s a dividend king. For more than 50 years, Altria has increased its annual dividend. That’s a level of stability that’s hard to look past. And something that makes it hard to ignore this marijuana stock that pays dividends.
A Grower and A Shower
Scotts Miracle-Gro stock has performed respectably for decades. But the company took things to a new level when it purchased Hawthorne Gardening Company. This subsidiary of Scotts has long been considered the standard for hydroponic growers. That’s notable because the majority of hydroponic growing is dedicated to marijuana. And marijuana growers love hydroponics.
Hawthorn gets bonus points for having its general manager named one of High Times’ most influential people in cannabis. But the real reason the company gets high marks is that this marijuana stock pays dividends. And that dividend yield has been steadily increasing for years. That makes Scotts one of the best marijuana dividend stocks on the market.
The Power of Diversity
Innovative Industrial Properties and Compass Diversified Holdings aren’t exactly household names. But that doesn’t take anything away from their value.
Innovative is a real estate investment trust (REIT). For the uninitiated, REITs are trusts that operate income-producing real estate. A common denominator among REITs is that their rental income and capital gains get paid out in the form of dividends. And REITs are incentivized to do so because as long as 90% of taxable income is paid out as dividends, they don’t pay certain taxes. Innovative is a specialist among REITs because it focuses on leasing property to experienced, state-licensed operators of medical use cannabis facilities.
Compass, on the other hand, partners with management teams to acquire middle-market businesses – some of which have operated in the cannabis industry. Most recently, Compass sold its stake in Manitoba Harvest – a hemp food company – for an impressive profit. The holding company also gained a lot of Tilray (Nasdaq: TLRY) stock in the process.
While both of these outfits have a strong hold in the cannabis sector, it’s the impressive dividend yield that makes them worthwhile. Innovative boasts a growing 2.3% dividend yield. And Compass has had a steady 6.1% yield. That makes both of these diversified investments strong marijuana stocks that pay dividends.
A Pot Stock Minus the Pot
AbbVie’s drug Marinol – which is a synthetic version of THC – was the first FDA-approved cannabis drug. It’s used as an appetite stimulant for those suffering from cancer, HIV and anorexia, among others.
Once Marinol went generic and dropped in price, AbbVie sold it to Alkem Laboratories in 2019. Today, AbbVie isn’t in the production or distribution of any cannabis treatments. But it does currently hold the most cannabis patents in the U.S. So while this is by no means a pure play on the pot industry, AbbVie’s intellectual property will make it a key player in the industry for years to come. This, paired with its status as a dividend aristocrat, makes AbbVie one of our favorite marijuana stocks that pay dividends. Well, that and its impressive 4.9% yield.
The Bottom Line on These Marijuana Stocks That Pay Dividends
There are plenty of cheap marijuana stocks out there. And a good case can be made to justify investing in them. But like any young company, they’re one scandal away from failure. Take the oh-so promising case of Theranos for example.
Now, Theranos is an extreme example of how a young and promising company can go sideways. But it also serves as a reminder of the fragility of a young company. Even one with a massive valuation.
But in the case of these five marijuana dividend stocks, there’s more certainty and less volatility. That’s because, although they’re exposed to the cannabis industry, they’re also diversified to withstand temporary shocks to the industry… while also being able to benefit from upswings.
If you’re interested in other income-generating ways to make money with your investment dollars, we suggest signing up for our Wealthy Retirement e-letter. It’s the easiest way we know of to prepare for your future while working toward financial freedom.
About Matthew Makowski
Matthew Makowski is a senior research analyst and writer at Investment U. He has been studying and writing about the markets for 20 years. Equally comfortable identifying value stocks as he is discounts in the crypto markets, Matthew began mining Bitcoin in 2011 and has since honed his focus on the cryptocurrency markets as a whole. He is a graduate of Rutgers University and lives in Colorado with his dog, Dorito.Comment -
old bill nevwrmind marijauna stocks u should be looking at mushroom stocksComment -
BIGGIE12
Does it make any sense to hop in on your:
BNB... matic radio caca
Thanks
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U won't see instant returns like last month. But I still think BNB is king and matic is at a nice price.
RadioCaca is back to where it was before the big push I bought and sold like 80% before it dumped. Recently just bought some more.... It has great potential but will take time.
Cro is also a steal if you have patience.Comment -
Parabolic move. M78...you in?Where's the fuckin power box, Carol?Comment -
Big...like I said, some of this stuff is over my head.
I have small investments in a few alt-coins, but it makes my head spin. Really looking to narrow my focus. BTC, I'm still optimistic about LTC, some metals, and Stock Index funds.Where's the fuckin power box, Carol?Comment -
Hello Terra LunaComment -
bitcoin didn't drop on a Sunday?
big things coming
where's mikey?Comment -
OK, the standings are much cleaner now:
Where's the fuckin power box, Carol?Comment -
Canada is IN. Props, boys!
Mex and USA are VERY LIKELY in.
Costa Rica shaping to be in the Play-In game vs Oceania champ. Which will be a winnable game.
Only thing that could flip that (based on my math) is C Rica flipping the Goal Diff massively. IE, beating USA by 6+ or getting a big loss from Mexico.
Mex/USA 99% of the way home, if not 100%.Where's the fuckin power box, Carol?Comment -
- "We recognize the innovation in the payment system can be a healthy thing," Yellen said.
https://markets.businessinsider.com/...ercrime-2022-3Janet Yellen says crypto has its benefits and the Treasury hopes to offer guidance on regulations that foster 'healthy innovation'
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https://www.bbc.com/news/business-60870100Russia considers accepting Bitcoin for oil and gas
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Raiders, my theory on the Russian invasion is that it's all tied to the $$. It's always a financial reason, right?
It's either moving attention from USD to BTC. Or Russia creating a currency backed by Precious Metals.Where's the fuckin power box, Carol?Comment -
There's the meat and potatoes for this recent push, looks they weren't effing aroundComment -
EU Parliament Votes For Bitcoin Privacy-Busting Rules -
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The dummies appear to be slowly waking up
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Bitcoin conference is this weekend.
Hopefully it isnt a cringefest and some useful news actually comes out of it.Comment -
Tymer, I've slowly been working my way thru the videos. A few honest replies:
1) I liked the Peter Thiel (Pay Pal) presentation. He showed a 1999 video from his younger days when he presented his ideas on $$. Good presentation but Thiel is not a fluid speaker.
2) Safedin Ammous (sp?) is a stud. Anyone with any clue should read "Bitcoin Standard" and "Fiat Standard" as basic education.
3) I'd argue that it's an unfortunate time to have Cathy Wood (they mis-spelled it WOODS) on the panel. Her fund was flying but now is tanking, so her credibility took a jolt. Her fund could be a case study on why the Stock Market might go south.Where's the fuckin power box, Carol?Comment -
Bitcoin has been crashing huge. It should reach zero by next week.Comment -
I'll have a check out the Safedin Ammous vid. See if there any other interesting vids, that arent just already rich people talking about how great bitcoin is.
Tried watching the Jack Mallers strike presentation. Seems like they are trying to replace banks/************ companies as the middle man between customers and merchants. Will have to keep an eye on that and how easy it is to use.
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Raiders/Bigtymer, I have to agree. The Conference videos I saw were pretty disappointing.
No HUGE announcements, not a lot I haven't seen before in some form. And virtually everyone selling SOMETHING.
Really, the two best videos I saw:
1) Ammous talking about his book. Man, this guy is brilliant. I haven't seen anything that tells me he's not 100% honest.
2) The video from the gentleman from Senegal. He spoke about the economies in Africa. Talked about Ghana's economy growing largely b/c it's a stand-alone currency. Senegal and other French colonies struggling badly b/c they're tied to the French $$.
I'm a believer that Bitcoin can indeed impact impoverished nations in Africa and South/Central America.Where's the fuckin power box, Carol?Comment
