When it comes to emerging markets, pot stocks are right up there at the top. Though it’s a relatively new industry, cannabis has seen rampant growth. So it wouldn’t come as a surprise for stocks in this sector to not pay dividends. Even technology stocks like Facebook and Twitter don’t pay dividends to investors & they’re blue-chip stocks.
However, in the theme of community, there are actually some pot stocks to watch that are actively paying dividends to investors. Now, I’ll preface by saying that there won’t be certain dividend-paying marijuana stocks on this list because they paid a one-time dividend to investors. This is usually seen during times of buyouts of one marijuana stock by another.
Needless to say, it doesn’t hurt to have exposure to dividend-paying stocks as the Oracle of Omaha would say. In fact, Warren Buffett’s Berkshire Hathaway fund has a majority of its holdings in dividend-paying stocks. Now, this doesn’t mean that Warren Buffett and pot stocks will become “a thing,” but, regardless the theory has proven itself.
Dividend-Paying Pot Stocks To Watch
Probably one of the most popular dividend pot stocks has been Innovative Industrial Properties (IIPR Stock Report). The marijuana REIT has been paying a dividend since 2017. Because of its status as a Real Estate Investment Trust, these commonly pay dividends. This is based on the fact that their tax status requires them to in order to be qualified with that status.
Usually, a REIT wouldn’t need to pay corporate income tax as long as they payout at least 90% of the taxable income as dividends. As far as IIPR stock is concerned, the company has paid a dividend yield of 2.25%. It has also increased its quarterly dividend numerous times, consecutively over the last few years.
AbbvVie Inc. (ABBV)
Even though this pot stock is down in the dumps lately, it still makes the cut. AbbVie (ABBV Stock Report) is the manufacturer of dronabinol branded as Marinol. The company has paid a consistent quarterly dividend since spinning off from Abbott in 2013. Unfortunately, the quasi-pot stock has gone through troubled waters with its pharmaceutical side.
Things like failed clinical trials for cancer drugs haven’t helped with “non-marijuana stock investors.” However, a dividend yield of around 5% hasn’t hurt either. With shares trading around 52-week lows, we’ll see if the dividend will be even more attractive at current levels.
Scotts Miracle Grow (SMG)
This was one of the pot stocks that came in the category of ancillary stocks. Scotts (SMG Stock Report) doesn’t touch cannabis directly. But it does have a subsidiary, Hawthorne Gardening that purchased General Hydroponics. Hawthorne is Scotts’ cannabis subsidiary and focuses on hydroponic growing. In addition, General Cannabis has been hailed as “the standard for hydroponic growers” by the likes of pot industry outlet, High Times. In any case, SMG does offer investors a dividend with a yield of about 2% annually.
Though none of these dividends are considered high by any means, they do show the evolution of pot stocks and the cannabis industry as a whole.