Regardless of your personal opinion about the legalization of marijuana, the reality is that it is turning into big business across North America. This is opening up a whole new market for companies that specialize in the product and this is going to generate quite a potential windfall for the savvy investor. If you are wondering how to get in on this burgeoning industry, you are not alone. It takes a bit of research to determine the best companies to invest in, no matter what sector of the economy they might be in. That is why this blog has taken much of the work out of the equation for you by finding the following five marijuana stocks that you will want to watch in the coming year.
You might already know of Constellation Brands, as they are the number one maker of premium beer in the United States. They have also recently diversified their business operations and are now one of the marijuana stocks to watch. They have come to this point thanks to their acquisition of 38% of Canopy Growth, which is one of the largest producers of marijuana in Canada. Constellation Brands has pumped billions of dollars into the cannabis industry because they see such a huge potential. Specifically, they are focused on the beverage sector where they envision marijuana becoming a major player in the near future. In addition to an attractive share price at the current time, they are also already paying out an annual dividend. That currently amounts to 1.6%, so the future appears to be bright indeed.
Innovative Industrial Properties
You might wonder how a company that specializes in real estate investment trusts came to be on this list, but that speaks to the power of diversification. Innovative Industrial Properties is now branching out into the medical cannabis sector of the economy. REITs are attractive for marijuana investors because it spreads out their risk. Because Innovative Industrial Properties is purchasing so many different real estate assets, they are well protected in the event that a few do end up failing. They are already operating in seven different states, with much room to expand in each. Their objective is to have over $1 billion invested in various marijuana markets around the country by the time 2022 rolls around. This is making it an attractive stock to watch.
Here is a company that is actually the number one supplier of packaging for cannabis suppliers in the United States. They have diversified their product line to include pop tops for bottles, vaporizers, tubes, and much more specifically designed for the marijuana industry. There is a lot of growth opportunity in this sector, so it will be interesting to watch this company in the coming years as well. Even if other packaging companies decide to enter the fray, KushCo Holdings is sufficiently diversified to withstand the blow, if any. There is also the potential to expand into the European market. If they do so, this will bode well for the stock price.
Liberty Health Sciences
This is a company that might have a limited foothold in the marijuana industry at the present time, but that is all about to change. They currently produce medical marijuana. Their primary focus is on several dispensaries across the state of Florida. That is where this company becomes interesting. It appears that Florida will be the third largest market for cannabis in all of America by the year 2022. Since they are currently one of only 14 marijuana producers licensed by the state, they are ready to start seeing a windfall in the near future. They currently have a market share of 15% and they see that going up to as much as 25% in the next few years. With plans to open a new dispensary in Ohio and possibly a few other states, this is a stock that really needs to be watched in the near term.
One final marijuana stock that you should check out this year is Origin House. They are currently the top marijuana product distributor in California. They have amassed a distribution line that consists of over 50 different products and are able to send them out to more than 70% dispensaries licensed by the state. With annual revenue in California slated to top $7.7 billion by 2022, Origin House will be earning quite a pretty penny. They also make a great deal of money by selling their own brands, which will speak well for future investors.
These five companies are poised for big gains in the near future. You will want to start watching them and determine for yourself if you would like to add them to your investment portfolio. With marijuana now being legalized across Canada and much of the United States, the market continues to grow. That spells great news for these companies and their investors.