Two "Marijuana Stocks" with Dividends to Own Right Now

Marijuana stocks with dividends are a rarity because most cannabis companies aren't profitable. There hasn't been enough time for these companies to make a profit, with medical marijuana first legalized in California less than 20 years ago in 1999.

Cannabis businesses can't pay a portion of profits to shareholders when there are no profits.

But when pot stocks do pay dividends, it's an incredible opportunity for long-term gains. Dividends can be used to purchase more shares, or shareholders can just keep them as quarterly income.

And we found two "cannabis stocks" with dividends expected to make double-digit gains this year...

marijuana stocks with dividends Now, some investors might not consider these pure pot stock investments. The companies don't produce or sell cannabis. But each company offers services and products used within the legal marijuana industry.

That allows investors to profit from the pot industry without the risk of owning stock in a company selling a product that's still illegal under federal law. And because these stocks pay dividends, investors can use dividend reinvestment programs (DRIPs) to maximize their future returns.

Editor's Note: This helpful video will explain everything you need to know about DRIPs.

Check out how reinvesting dividends into these two stocks brought triple-digit returns over the last 20 years and how you can start a dividend reinvestment strategy with them right now...

These Marijuana Stocks with Dividends Have Climbed Over 300%

By reinvesting dividends into buying more of the same stock, you can amplify your gains over time. Take a look at how dividends boosted the return on these two "pot stocks" we're going to show you...

If you invested $10,000 and reinvested the dividends in the first pot stock we're about to mention on Dec. 31, 1997, your shares today would be worth $64,515.70. Without reinvesting the dividends, the shares would be worth $51,663.43. A dividend reinvestment strategy added 25% more profit for shareholders than they would've gotten on a similar stock that didn't pay dividends.

That's an extra $12,852.27 in your pocket just from letting the dividends do the work for you.

In comparison, a $10,000 investment in the Dow Jones Industrial Average would now be worth just $40,525.61. That means with the help of dividends, this stock performed 59% better than the Dow.

In December 1997, this stock traded for $16.16 per share. The stock price has now climbed 328% in the last 20 years, opening today at $69.25 per share. On top of the skyrocketing stock price, the dividend payout has increased for 13 years straight.

And the profits from the second marijuana stock with dividends we are about to show you are even more staggering.

A $10,000 investment in this stock on Dec. 31, 1997, with the dividends reinvested would now be worth $85,572.14. In comparison, the shares would only be worth $70,585.55 if the dividends weren't reinvested. That means reinvesting dividends would've boosted your return by 21%.

This stock has climbed 451% since it traded for $15.13 per share on Dec. 31, 1997. On top of that, this company has increased its dividend payout for the last seven years.

BREAKING: New Legislation Could Turn Tiny Pot Stocks into Millions. Click Here...

But if you missed out on these massive gains, it's okay. Each company still pays a dividend yield of over 2%, and their stock prices are both expected to climb an average of 21.5% in the next 12 months.

However, you need to own these two pot stocks with dividends today to maximize your profit potential, especially since they are going to pay their quarterly dividend this summer...

The Best Marijuana Stocks with Dividends to Own Now

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Our first stock pick is Microsoft Corp. (Nasdaq: MSFT). Microsoft is one of the best-known tech companies in the world.

I know what you're thinking: Microsoft is a tech giant. Over 400 million devices run Windows 10, and Microsoft Office has been downloaded 340 million times on iPhones, iPads, and Android devices.

But Microsoft's advanced cloud technology will help investors will profit from marijuana without the speculative risk of a penny stock.

Microsoft is a leader in the cloud-computing market, with $6.7 billion in revenue from its Azure cloud service in Q3 2017. And cloud computing is going to be essential for the marijuana industry.

In June 2016, cannabis compliance firm KIND Financial partnered with Microsoft to run its software through Microsoft's cloud.

"I think 2017 is going to be the year where things really pull together," Money Morning Director of Technology & Venture Capital Research Michael A. Robinson said on CNBC World on Jan. 4, 2017.

Video

Which States Will Legalize Marijuana Next?

KIND uses technology to track marijuana plants from "seed to sales." Cannabis growers will register each plant they grow with the state government, as well as the sale of each marijuana bud from the plant.

This ensures dispensaries are compliant with local and state laws, and the need for KIND's services is only going to increase as states legalize marijuana. It's a matter of "when" and not "if" the United States completely legalizes medical marijuana, as 29 states and the District of Columbia have some form of legal marijuana laws.

And as local governments turn to KIND to help regulate the cannabis industries in more states, KIND's cloud-computing needs from Microsoft will expand.

There is no information on Microsoft's revenue from KIND. But by 2018, MSFT expects to generate $20 billion in commercial cloud revenue alone.

And because of Microsoft's long list of products and services, investment bank Griffin Securities is bullish on the MSFT stock price.

In the next 12 months, Griffin projects the MSFT stock price will climb to $82 per share. From today's opening price of $69.25, that's a potential profit of 18.41%.

On top of that projected price climb, Microsoft stock also pays a dividend of $0.39 per share, which is a yield of 2.24%.

The second cannabis stock with a dividend on our list is Scotts Miracle-Gro Co. (NYSE: SMG).

Scotts is known for being a leader in lawn care and gardening since 1868.

When the economy was growing in the early 2000s, mega retailers like Home Depot Inc. (NYSE: HD) and Wal-Mart Stores Inc. (NYSE: WMT) were expanding their locations. Because each store carries Scotts' products, Scotts' revenue climbed 80% between 2001 and 2009.

But after the financial crisis of 2008 and 2009, Wal-Mart and Home Depot stopped expanding and shut down stores.

That left Scotts' revenue stagnant.

So in order to boost sales, CEO Jim Hagedorn made what some consider a controversial decision: He invested in the marijuana industry.

In 2015, Hagedorn purchased two companies that specialize in soil and fertilizer for cannabis growers. In July 2016, he also invested a 75% stake in Gavita International, a hydroponics equipment company.

And it appears Hagedorn's forward-thinking decision is paying off...

As of December 2016, Scotts' hydroponics business generated roughly $250 million annually, according to Bloomberg. That number will continue to climb as more states legalize medical and recreational marijuana...

According to Money Morning Director of Tech & Venture Capital Research Michael A. Robinson, the value of the hydroponically grown plants market is skyrocketing.

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.

Over the next 12 months, Great Lakes Review, a division of financial firm Wellington Shields, has a one-year price target of $105 for the SMG stock price. From today's opening price of 83.37, that's a potential profit of 25.94%.

SMG also pays shareholders a dividend of $0.50 per share for a yield of 2.37%.

A Pot "Bombshell" Just Hit Canada: For our neighbors to the north, it's shocking news. But it could be the best news of all time for marijuana stock investors. In fact, this single "bombshell" event could unleash a new pot stock boom that will blow the doors off anything we've seen up to this point. And by putting a couple of hundred bucks into a handful of tiny Canadian weed companies, you could pocket life-changing gains - turning a few hundred bucks into a fortune overnight. Watch this now to get all the details...

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