The Second Marijuana ETF Is Now Open For Business

The AdvisorShares Pure Cannabis ETF (YOLO), the second pure play Marijuana Exchange Traded Fund began trading on Thursday, April 18th, (it would have been fun if the market had been open on April 20th). The fund is a direct competitor to the ETFMG Alternative Harvest ETF (MJ), the only other US traded marijuana ETF.

(It should be noted that the AdvisorShares Vice ETF (ACT) also is heavily invested in marijuana and cannabis stocks, but it also has a large percentage of its portfolio in tobacco and alcohol-related business, which have no connection to the marijuana industry).

The two funds will be direct competitors, but not because they are investing in the same companies due to the differences in each fund’s principal investing strategy based on their ‘Fund Prospectus,’ but solely because they are the only two ETF’s primarily focusing on cannabis-related businesses.

YOLO’s fund prospectus states the following; Continue reading "The Second Marijuana ETF Is Now Open For Business"

Cannabis Stocks With Impressive Dividend Yields

For dividend investors, the cannabis sector looks pretty scary.

This high-growth sector has a reputation for extreme volatility, unpredictable earnings reports, and mega-acquisitions that can stress the balance sheet.

While these traits hold true for a large segment of the cannabis sector, what many investors don’t realize is that there is a hidden class of cannabis stocks that completely buck the trend.

These undercover cannabis stocks offer more share price and earnings stability than the traditional cannabis stock. More important – they are also excellent dividend payers.

3 of the Best Cannabis Dividend Stocks

These three dividend payers all have unique qualities:

  • The first pays a 5.4% dividend that is a 150% premium to the S&P 500’s 1.8% dividend yield.
  • The second has grown its dividend by more than 200% in the last two years.
  • The third has a low dividend payout ratio of 58%, making it highly reliable.

Largest Dividend

Continue reading "Cannabis Stocks With Impressive Dividend Yields"

Florida's Largest Cannabis Player Set to Expand

Florida’s cannabis market is about to be unleashed and I think this early industry leader is ready to cash in on the booming trend.

Back in 2016, Florida created a law that restricted state cannabis companies to operating 25 dispensaries. That cap was designed to expand as the number of medical cannabis patients increased. Today, the cap stands at 35.

However, in a recent and major legal victory, this cap is about to be wiped out.

The largest cannabis company in Florida now plans to expand from 27 dispensaries to 49.

This sets the stage for this early industry leader, and Florida’s cannabis market to accelerate big time. That’s really saying something, because Florida is already one of the fastest-growing cannabis markets in the US, seeing huge gains in 2018. Continue reading "Florida's Largest Cannabis Player Set to Expand"

Top Stock To Capitalize On Connecticut's Move To Legalize

The US cannabis market just got another big boost from one of the largest, most populous states on the East Coast.

Connecticut just became the latest US state to make a big move towards legalizing recreational cannabis as state legislators advanced a critical bill.

Here are some more details from Marijuana Moment.

A key committee in the Connecticut legislature approved a bill to legalize marijuana on Monday.

The General Law Committee, which is one of two panels that heard testimony about legalization legislation last week, voted 10 to 8 to advance the bill.

Beyond legalizing cannabis for adult use, the legislation also includes a number of social equity provisions aimed at encouraging participation in the legal industry by individuals from communities that have been disproportionately impacted by the drug war. A governor-appointed commission would be charged with giving such individuals advance time to apply for a marijuana business license and promote diversity in hiring.

The vote was an important milestone that moves Connecticut much closer to legalizing recreational cannabis.

Connecticut is already home to a thriving medical cannabis market. Continue reading "Top Stock To Capitalize On Connecticut's Move To Legalize"

Colombian Cannabis Leader Up 90%

The South American cannabis industry is set to grow into one of the largest cannabis markets in the world in the next 10 years.

According to The LATAM Cannabis Report™ from well-respected market research firm Prohibition Partners, medical cannabis sales in Latin America will explode to $8.5 billion in the next ten years, up from just $125 million in 2018.

Additional key details from the report:

  • Medical cannabis will account for more than two-thirds of the legal cannabis industry in Latin America, worth an estimated $8.5 billion.
  • The cannabis sector is set to grow by over 300% per year over the coming decade.
  • There are over 40 licensed producers in the region. Colombia has issued the most cultivation licenses in the region, with over 142 licenses to date.
  • Facility and construction costs are 80% lower than in North America and Europe.
  • Chile and Mexico will be engines of growth in the medical sector while Uruguay and Colombia will encourage region-wide recreational cannabis legislation.
  • Patient numbers will increase significantly to over 4.6 million by 2028.

Last month I shared Khiron Life Sciences (KHRN, KHRNF) – a young cannabis company headquartered in Canada that is in position to capitalize on South America’s cannabis market.

I think this second company is also in position to cash in. Continue reading "Colombian Cannabis Leader Up 90%"