One of the Most Controversial Opportunities Could Test Higher Highs – 4/3

Heading into the U.S. elections, keep an eye on cannabis stocks.

For one, the Pew Research Center just found that about nine in 10 Americans (88%) said that cannabis should be legal for medical or recreational use. About 57% said cannabis should be legal for both medical and recreational use. 

So, we know it’s growing in popularity.

Two, there’s growing speculation that if one of the presidential candidates talks about potentially legalization cannabis at the federal level, they could pick up votes. If that happens, or we hear about that potential, cannabis stocks could soar.

That being said, investors may want to look into cannabis stocks such as:

Company: Innovative Industrial Properties (IIPR)

While we wait for potential legalization at the federal level, we can collect its current yield of about 7.22%. IIPR just declared a $1.82 per share dividend, which is payable on April 15 to shareholders of record as of March 28.

Earnings may only get better as the cannabis story grows. In its most recent quarter, its funds from operations (FFO) was $2.07, which beat by five cents. Revenues of $79.16 million — up 12.3% year over year — beat by $2.68 million.

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Company: ETFMG Alternative Harvest ETF (MJ)

 With an expense ratio of 0.75%, the MJ ETF tracks the Prime Alternative Harvest Index, designed to measure the performance of companies within the cannabis ecosystem benefitting from global medicinal and recreational cannabis legalization initiatives. 

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Company: Global X Cannabis ETF (POTX) 

 With an expense ratio of 0.50%, the ETF seeks to invest in companies across the cannabis industry. This includes companies involved in the legal production, growth and distribution of cannabis and industrial hemp, as well as those involved in providing financial services to the cannabis industry, pharmaceutical applications of cannabis, cannabidiol (i.e., CBD), or other related uses. 

 

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