I love when you folks send me questions.
I love it even more when your questions lead me to an investing idea I can then share with you.
A lot of you ask me about tech dividend stocks. You’re looking for the growth of tech stocks – along with the income dividend payers provide.
That makes a lot of sense to me.
Even more of you ask me about pot stocks – and how to invest in them.
And just recently one of you asked me about dividend-paying legal cannabis stocks – about whether they even exist.
Well, they do.
After all, every Venn diagram has its union.
Of course, most cannabis growers and dispensaries haven’t been established long enough to make a profit, let alone pay a portion of their profits to shareholders in the form of dividends.
However, there are marijuana “pick-and-shovel” plays that offer hefty dividends.
Stake Your Claim
Marijuana pick-and-shovel plays allow investors to profit from the legal pot industry without the risk of owning stock in a startup company whose product is still illegal under federal law.
And because the plays I’m telling you about today pay dividends, investors can reinvest their cash rewards to maximize their future returns.
It’s like investing in Levi Strauss & Co. during the California Gold Rush of the 1840s and ’50s. Levi’s didn’t mine gold, but it supplied the garments for the thousands of men who did.
The company’s slogan back then was even “For Men Who Toil.”
Since then, Levi Strass has become the largest pants manufacturer in the world.
Something similar could happen to one of these three Marijuana Dividend Stocks.
Marijuana Dividend Stock No. 1: Scotts Miracle-Gro
Scotts Miracle-Gro Co. (NYSE: SMG) is well known for being a world leader in lawn and gardening care.
Now, the nearly 150-year-old company is making its move in the marijuana space – and it’s already started to pay off.
Nearly two years ago, Scotts’ CEO, Jim Hagedorn, purchased two companies that specialize in soil and fertilizer for cannabis growers. Then, one year later, he invested a 75% stake in Gavita International, a hydroponics equipment company.
Hydroponics is the method of growing plants without soil by using mineral nutrient solutions in a water solvent – a popular and highly effective way of growing cannabis, especially in densely populated areas.
As of December 2016, Scotts’ hydroponics business generated roughly $250 million annually, according to Bloomberg. And that number is only going to grow as we head into 2018.
As more states legalize medical and recreational marijuana, the value of legal marijuana is expected to skyrocket.
And so will the hydroponic plant market…
The global crop value of hydroponically grown plants is expected to climb from $17 billion in 2013 to $24 billion by 2018. That’s a 41% increase in just five years.
Scotts’ commanding presence in the hydroponics space makes it a buy no matter what marijuana does, thanks to the growing demand for hydroponic equipment among young urban consumers. On top of that, Scotts pays a 2.16% dividend yield and has been growing its dividend consistently for the past seven years.
And at around $98, Scotts is down 4.6% from Nov. 7’s all-time high, making for a nice buying opportunity. We wouldn’t wait much longer, though. The vehemently pro-weed Phil Murphy was just elected governor of New Jersey, the most densely populated state in the United States. That means marijuana, hydroponics – and Scotts – are set to soar.
I’ve been following the burgeoning marijuana industry closely, and I’ve already brought readers 10 double-digit winners and eight triple-digits winners over the past year. To see how, click here.
In order to find those mega-winners, I had to screen hundreds of companies using extensive, rigorous criteria and analysis.
And this next Marijuana Dividend Stock is near the top of his list…
Marijuana Dividend Stock No. 2: Constellation Brands
Constellation Brands Inc. (NYSE: STZ) – the Fortune 500 alcohol producer behind Corona beer, Robert Mondavi wines, Svedka vodka, and dozens of other brands – is the latest company to realize the profit potential of the legal marijuana industry.
Just last month, the Victor, New York-based company bought a 9.9% stake in the largest publicly traded legal marijuana “pure play”: Canopy Growth Corp. (OTC: TWMJF). The $191 million deal gives Constellation some traction in an industry expected to soon take off.
“We’re obviously trying to get first-mover advantage,” Constellation CEO Rob Sands told The Wall Street Journal on Oct. 29. “We think that [nationwide marijuana legalization] is highly likely, given what’s happened at the state level.”
But Constellation doesn’t just want to profit from the industry’s imminent success – it wants to be a part of it. Constellation is planning to use its new 9.9% stake in Canopy to develop, market, and sell cannabis-infused beverages.
At least that’s what the mainstream financial press is focusing.
But you can ignore that. The truth is that the big alcohol companies and the big cigarette companies will eventually swallow the entire legal marijuana industry, making huge fortunes for the shareholders of the companies they acquire.
Here’s the proof: Canopy’s shares soared an incredible 19%+ on the news.
The parent company of medical marijuana subsidiaries that produce and sell marijuana, Canopy was the first federally regulated, publicly traded cannabis producer in North America. This early foothold has helped make its Tweed into perhaps the most recognized marijuana brand in the United States and Canada.
The announcement comes as a surprise to some people because alcohol and cigarette companies have been funding opposition to legal marijuana in each state where the issue has come up. But all those lobbying dollars are just a delaying tactic. These companies know that legal cannabis for both medical and recreational use is coming.
And with their experience in dealing with intoxicating substances and extensive legal regulation, alcohol and cigarette companies are the best positioned to profit from all that legal marijuana.
Constellation recently paid out a quarterly dividend of 52 cents per share. At the current stock price of $216.80, its dividend yield is 0.95%. But it’s on the way up. Historically, Constellation dividend has increased more than 25% each May.
And now that it’s in the budding marijuana industry, I expect its dividend – and its stock price – to keep growing for years to come.
You’ll want to get in on this company now, before California’s recreational marijuana legalization goes into full effect on Jan. 1 and this stock becomes widely recognized as a must-have.
Our next Marijuana Dividend Stock is one of my all-time favorites.
You’ll likely see double- and even triple-digit gains from this stock, and it pays a dividend that puts you way out ahead of inflation and low interest rates, too.
What’s more, all kinds of small legal cannabis companies are beating a path to its door for help with a very tricky problem…
Marijuana Dividend Stock No. 3: Microsoft
When you think about Microsoft Corp. (Nasdaq: MSFT), cannabis probably isn’t the first thing that comes to mind. Yet, this company is a serious player in the legal cannabis space.
The Redmond, Washington-based tech juggernaut won’t be marketing stony edibles or any potent new strains of weed.
In fact, it won’t touch so much as a seed. It’s all about the partnerships.
This blue-chip tech favorite is involved with the software side of the cannabis sector, partnering with a California-based startup called KIND Financial to help ensure cannabis companies stay inside the legal lines.
Microsoft is working with KIND’s Government Solutions division to make available to state and local governments the software they need to develop ways to track compliance. Strict compliance is a way to make legal weed safe for consumers in a regulated marketplace and palatable to “law-and-order” types in governments and legislatures.
The software KIND has created will allow governments and entrepreneurs to monitor the distribution of cannabis “from seed to sale” and ensure compliance along the way.
But this move from Microsoft is about much more than keeping cannabis companies on the straight and narrow. In one swoop, Microsoft has done nothing less than legitimize the cannabis trade in the eyes of many.
The company will begin by marketing the software to government employees, but hasn’t ruled out marketing through dedicated cannabis events. The Microsoft logo flying proudly at a conference packed with marijuana growers and distributors would be a huge leap forward for the industry.
Microsoft gets you low-risk entry into the legal cannabis sector and a respectable 2% dividend yield.
This is one to buy now and build out on dips.
It’s a little expensive right now thanks to an earnings boost, but keep your eye on it: You don’t want to miss a single buying opportunity with this tech and marijuana mainstay.
The Best Pot Stocks Today
Microsoft and Scotts have long been mainstays in my Roadmap to Marijuana Millions legal cannabis portfolio.
Those who got their copy of Roadmap and got in early have already minted 18% on Scotts – and a cool 43% gain on Microsoft.
But the profits are far from over…
I’ve now vetted the next generation of weed stocks that are poised to make marijuana investors rich.
They’re all in my newly released and updated Roadmap to Marijuana Millions: Phase II. This book contains an incredibly diversified list of more than 30 of the best legal marijuana stocks on the market – including details on five tiny weed stocks that could potentially turn a small stake into $100,000.
Click here to learn how to get your copy today…