There are thousands of marijuana stocks trading on major exchanges today. Hardly any of them pay dividends.
Finding those few high-yield dividend-paying marijuana stocks is the best way to invest in the insane growth of this industry, all while collecting safe dividend payments.
The marijuana dividend stocks I'll show you today are the best of both worlds.
After all, marijuana is one of the fastest-growing industries we've ever seen.
According to the National Institute for Cannabis Investors (NICI), legal marijuana was a $10.8 billion market in 2018. But by 2029, it's estimated the market could hit a whopping $2.6 trillion in annual sales.
That's growth of 23,974%. For the entire industry.
But many of the marijuana stocks you can buy are extremely speculative.
NICI's proprietary research tool, NICIlytics, points out that only 24 stocks in the cannabis industry have market caps over $1 billion. Sure, a few of those stocks will soar triple digits. But many more of them will leave you penniless as the bigger companies dominate the sector.
Those bigger, safer companies are the ones we're showing you today. They may not soar 10,000%, but they'll still offer you triple- or even quadruple-digit upside, all while paying a reliable dividend.
Here are the three best high-yield dividend marijuana stocks to buy today...
Best High-Yield Dividend Marijuana Stocks, No. 3
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The third stock on our list today is Abbvie Inc. (NYSE: ABBV). While ABBV is not a traditional "marijuana stock," the company does have several drugs that are closely associated with cannabis.
Its biggest is Marinol. Developed in the 1980s, Marinol is a "dronabinol," which is the same chemically as THC. The drug has been used by patients who need help managing nausea and loss of appetite associated with chemotherapy and AIDS.
Marinol isn't a blockbuster drug, but it shows Abbvie's willingness to work with cannabis-related drugs. And as cannabis continues to be legalized around the world, there's clearly a market for similar drugs.
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Now for the dividend. ABBV pays an insane 5.7% yield right now. You just aren't going to find that kind of dividend anywhere else in the marijuana space. And ABBV is a $124 billion company that reported $25 billion in gross profit in its last fiscal year.
That's about as safe as a dividend gets in the biotech world. Not to mention, earnings are expected to climb 13% in FY 2019 to $8.92. Another 6% growth is expected in 2020.
Best High-Yield Dividend Marijuana Stocks, No. 2
Scotts Miracle-Gro Co. (NYSE: SMG) is another company making major investments in cannabis. Over the past five years, Scotts has invested more than $1 billion in the industry. Most of that money has been spent on hydroponics, which is a technique of growing plants using nutrient-rich water instead of soil.
Its first acquisition was in 2015, when SMG subsidiary Hawthorne Gardening purchased General Hydroponics Inc. It has also acquired Bio-Organic Solutions Inc. and Sunlight Supply, both of which are hydroponics forms. With these moves, SMG's hydroponic products can be purchased in 1,800 stores across North America.
Of course, Scotts is not only a marijuana company. For more than 130 years, Scotts has been a leading supplier of lawn and garden products. It currently has a market cap of $6.5 billion, meaning this is another reliable company to invest in.
Its dividend yield is currently 1.99%, and it's expected to grow earnings in FY 2019 13% to $5.04 per share.
Best High-Yield Dividend Marijuana Stocks, No. 1
The top stock on our list today is Innovative Industrial Properties Inc. (NYSE: IIPR). IIPR is a real estate investment trust (REIT) in the cannabis space with a market cap of $862.6 million.
IIPR leases space to state-licensed medical marijuana operators. This is an important business because most banks won't deal with marijuana businesses while cannabis remains illegal federally. Because of this, it can charge greater interest rates than traditional banks. That's been lucrative for the company.
IIPR currently pays a dividend of 4.3%. That may be on the low end for a REIT, but it's significant for any company in the cannabis industry.
Just take one look at the company's growth, and it's clear this business is a cash cow. EPS is expected to grow 134% to $1.76 for FY 2019. Analysts expect growth of 156% to $4.51 per share in 2020.
America's 1% Are Converging on the Next "Gold Rush"
The Fortune 500, big investment firms, and the Wall Street elite are all pouring billions into a new agribusiness market.
It's an investment strategy that's already worked for them before - for example...
Vanguard, Credit Suisse, and RBC were behind an IPO in this industry that shot up 659% in under one year...
Deutsche Bank and UBS were behind the scenes of a 641% windfall...
And Goldman Sachs, Black Rock, and Morgan Stanley lined their pockets with a whopping 3,813% profit...
But the biggest gains are yet to come. As medical research in this area trucks on, this could become a $1 trillion global industry. Individual investors could become millionaires practically overnight.
I know the numbers are big, but the research backs it up.
What's more, we've picked three stocks in this industry with the biggest upside potential.