One of our favorite marijuana dividend stocks is about to receive a huge boost in sales.
Luckily for its investors, Scotts was early to board the marijuana train.
In 2015, 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 expected to grow.
Since then, the company has also acquired leading brands Agrolux, Botanicare, General Hydroponics, and Vermicrop to capitalize on cannabis legalization.
And its shareholders have been handsomely rewarded.
Over the past two years, SMG stock has risen a solid 59%.
Add that to Scotts' above-average 2.09% dividend yield, and it's no wonder we've been recommending this stock to readers since September 2016.
"I like Scotts because the global crop value of hydroponically grown plants is expected to climb from $17 billion in 2013 to $24 billion by 2018," said Money Morning Director of Technology & Venture Capital Research – and pot stock expert – Michael Robinson in June.
"That's a 41% increase in just five years."
And now the company has made another breakthrough investment in the marijuana space.
This time, to the tune of $72.2 million…
Scotts Miracle-Gro Is Amplifying Its Cannabis Industry Exposure
During a conference call on Nov. 7, the company announced its Q4 financials and revealed its latest acquisition, Can-Filters: a Canadian company with operations in Canada and the United States.
CEO Jim Hagedorn called the company "the top hydroponic brand in air movement and filtration systems."
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Scotts spent $72.2 million on the acquisition. According to NewCannabisVentures, Scotts Miracle-Gro has now invested $565 million since March 2015, beefing up its stake in the marijuana industry.
And the results have no doubt made investors jubilant…
According to the recent filing, Hawthorne (Scotts' operating unit for hydroponics) produced sales of $287.2 million last year, up 137% from the previous year. Moreover, those figures represented an impressive 11% of overall corporate sales.
That sales figure is expected to grow as more states throughout the country, like California, fully legalize cannabis for recreational use.
CFO Randy Coleman implied the company should see 2018 sales rise about 15%, saying the company expects that "Hawthorne will continue to see double-digit volume growth."
Make no mistake: A 15% surge in sales revenue will easily translate to gains in the stock price. You definitely want to own shares of SMG before that happens, because you may not see them at a better price.
Top Three California Pot Stocks to Watch for the Biggest Gains
We've already seen people accumulate massive gains from previous marijuana legalization announcements, but this event is about to blow the lid off of anything we've seen so far.
Are you positioned to profit?
Michael Robinson recently held a crucial summit to show ordinary people how to make millions from California's impending marijuana legislation.
And he's narrowed his focus to three tiny California pot stocks expected to explode following legalization.
With billions of dollars in revenue projected to flow into this industry, learning how to get in on the ground floor – before these tiny stocks shoot up – is your best shot at life-altering gains. Go here now for details.