Our Marijuana Stock Expert Loves This Pot Play

Investors might believe they can only buy shares of risky pot stocks, but our marijuana stock expert says that's not always the case...

In fact, Money Morning Director of Technology & Venture Capital Research - and pot stock expert - Michael Robinson has a pot stock pick that has a $5.8 billion market cap.

marijuana stocksThis company we are about to mention also trades on the New York Stock Exchange (NYSE), pays a dividend of $0.53 per share, and 67% of analysts covering it give it a "buy" or "overweight" rating.

Now, most investors wouldn't consider this a traditional pot stock.

However, this is what Robinson calls a "pick-and-shovel" play on the cannabis industry. Instead of investing in a company that sells marijuana, investors buy shares of a company that provides products or services to the cannabis industry. That's because the people making money during the famed California Gold Rush weren't the miners, they were the people selling them picks and shovels.

And Robinson likes this "safe" cannabis stock so much because it's becoming a go-to equipment choice for marijuana growers...

Our Marijuana Expert Just Found Your Next Pot Stock Profit Play

Growing marijuana plants is a labor-intensive project that requires high-tech equipment to grow the best products.

"To protect their investment, growers turn to state-of-the-art greenhouses containing high-tech devices and monitors," Robinson said on Sept. 25, 2017. These devices include hygrometers, CO2 tanks, high-powered horticultural lightbulbs, custom fans, valves, pumps, and nutrients.

Video

Marijuana Businesses Are Teaming Up with This Billion-Dollar Company

But outside of mass-scale pot farms, demand for equipment from cannabis-growing hobbyists will also increase.

California voted to legalize recreational marijuana in November 2016. As part of legalization, California residents 21 years or older can grow up to six marijuana plants in a private home as long as the plants are grown in a locked area not visible to the public.

Now, it's true marijuana is still illegal under federal law. But what makes this investment one of the "safest" investments in the marijuana industry is that the company we are about to mention will still be in business no matter what happens with cannabis laws.

It's operated since 1868, and it's one of the world's largest companies in its sector. It just happens to be branching into the explosive marijuana industry. This has already turned into a $250 million business for them.

With over 29 states legalizing medical marijuana, cannabis legalization has come too far to stop. Legal marijuana sales in North America are expected to skyrocket from $6.7 billion in 2016 to over $20 billion by 2020.

That's an increase of 198% in just four years.

NEW: Plot your course to a seven-figure weed windfall with the top pot stocks from every ecosystem - growers, edibles, dispensaries, and more. Read more...

That's why, before the industry really takes off, we had to make sure you got in early on the "safest" marijuana stock to own right now...

This Is the "Safest" Way to Invest in Marijuana Stocks

[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]

Scotts Miracle-Gro Co. (NYSE: SMG) is known for being a leader in lawn care and gardening since 1868, but it is now expanding to the marijuana industry...

When the economy was growing in the early 2000s, 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.

So, in order to boost sales, Scotts 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. The business should keep growing, as 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 last 12 months, the SMG stock price has climbed 17.73%. On top of the stock price climb, SMG pays its shareholders a $0.53 dividend, which is a yield of 2.13%.

Pot Stocks Creating Historic Cash Windfalls: The $6.7 billion legal marijuana market is estimated to top $35 billion by 2020. And a few dozen tiny stocks are set to deliver potentially once-in-a-lifetime windfalls. As a service to Money Morning readers, we're now making available our 89-page cannabis investing guide, The Roadmap to Marijuana Millions. This "bible of weed investing" features the absolute top 30 pot stocks in edibles, dispensaries, biotech, and more - all of which could make you a fortune. Click here to reserve your copy now!

Follow Money Morning on FacebookTwitter, and LinkedIn.