The fairly new cannabis industry is still finding its place in the world of business and finance. Cannabis investing doesn’t just mean grow operations and dispensaries. With the rise in non-psychoactive hemp production and widespread use, there are also many CBD stocks to watch as well.
Hemp is used in the food industry (hemp seeds and hemp oil), clothing industry for fabric, and for medicine as cannabidiol (CBD). Other booming cannabis industries include those that focus on products needed by the growing number of cultivators such as specialized grow lights and industrial pesticides and fertilizer for example. Marijuana packaging businesses and retail companies are other options.
Should you buy pot stocks?
Publicly traded cannabis companies haven’t done so well in the past and have a bad rap for a number of reasons, but there is huge potential for those that play the game right. This is particularly because the market grows year over year with a shifting public perception on the drug and legalization spreading across the U.S. and Canada. Just this year, Arizona, Montana, New Jersey, South Dakota, Mississippi, and South Dakota all legalized pot for recreational or medicinal use bringing the total to just 15 states that ban the green goddess.
Revenue for cannabis businesses continues to surpass expectations and unlike other industries, it has not slowed down during the pandemic. Canadian pot stocks in particular have not been doing well and are still reporting losses mainly due to greater supply than demand in Canadian markets and increased investment in research and development, among other things.
Marijuana businesses that are able to span the border into both the Canadian and U.S. markets are predicted by investors to do better than the rest. Even if you’re not into trading stocks, you may have heard of some of the biggest cannabis companies out there, particularly Canopy Growth Corp. (NASDAQ:CGC) and Cronos Group Inc. (NASDAQ:CRON), but there are a bunch of up and coming businesses that should be on your radar. Here are a few:
Cresco Labs Inc. (OTC: CRLBF)
The Illinois-based marijuana company has a growing hold on the U.S. market with operations in nine states and a total of 19 dispensaries, 15 production facilities, 29 retail licences. The budding business has a diverse portfolio of CPG brands under its name such as Cresco flower, Reserve, Remedi, Mindy’s, Good News, High Supply, Wonder Wellness Co., and more.
With consistent revenue generation and triple-digit gains during the pandemic, Cresco Labs is a buy. It is trading for around $10 a share on the OTC.
Canopy Growth Corporation (NASDAQ:CGC)
This Canadian company is the largest cannabis stock in the world and has been around since the early days, when it was thought to be a huge cash cow. CGC stock hasn’t produced the booming returns as predicted, but has done very well during COVID-19 having gained 38%, more than doubling since October 2020.
Canopy Growth is also backed by the huge alcohol company Constellation Brands (STZ), so it looks like they may have the investments needed to take the business to the next level. CGC stock is trading around $28.
Top pot stocks for dividends
AbbVie Inc. (NYSE:ABBV)
Trading for around $105 at the moment, AbbieVie is a large biopharmaceutical company that employs around 47,000 researchers and scientists.
Though not a traditional cannabis stock, AbbieVie has produced a synthetic form of THC used in their drug, Marinol. It is used by cancer patients and those with AIDS to treat extreme nausea and weight issues. Dividends are 5.15%, one of the highest in the sector.
Innovative Industrial Properties Inc. (NYSE:IIPR)
This stock is a Real Estate Investment Trust, known in the industry as a REIT. Innovative Industrial Properties provides real estate for medical cannabis businesses, whether it be a retail location, manufacturing plant, or a location for cultivation and processing. Dividends are paying at 3.5%.
Top marijuana penny stocks 2020
What is a penny stock, you ask? It used to mean the stock of a small business that traded for $1 or less, hence the name penny stock, but now it refers to those selling for $5 or less. Penny stocks are typically not listed on the main exchanges like the New York Stock Exchange and are instead traded over-the-counter (OTC).
Unlike what you may be thinking, it is possible to make money off of trading penny stocks. Some of the most successful businesses like Apple, Ford Motor Company, and Amazon started out as OTC penny stocks!
Jushi Holdings Inc. (OTC:JUSHF)
Jushi Holdings is nearly always listed as one of the top 5 U.S. marijuana stocks to watch and currently costs $4. The business has big plans to expand with current operations in Illinois, Ohio, Virginia, Pennsylvania, New York, Nevada, and California.
Revenue continues to grow quarter over quarter, with its pharmaceutical component operating in cultivation, manufacturing, and processing and its retail brand called Beyond/Hello was just launched this year.
Are you looking to test out the products from one of your new pot investments? Try out a new vaporizer, dab pen, glass bong, smoking pipe, or dab rig at the Everything for 420 online headshop.
Interesting related article: “What is CBD?“