A market analysis report showed that the U.S. cannabis market had a value of USD 11.3 billion in 2018 and is forecast to grow 14.5% by 2025.
The uses of cannabis in the U.S. includes cosmetic, food and beverage, and pharmaceutical companies. Recent legalization has driven profits up and, according to research by New Frontier Data, the cannabis market contributed 340,000 legal jobs to the U.S. economy in 2019 translating to $12.4 billion in paid wages. The number of U.S. cannabis-related jobs is forecast to reach 743,000 by 2025. If there is full federal legalization, there could be as many as 1.63 million cannabis-related jobs in the U.S. by 2025.
The growth of the U.S. cannabis market has been exponential even in the face of legal challenges. But, does that make it a smart financial investment? The Motley Fool’s Keith Speights, suggests a few companies do offer dividends, and that these three companies yield the highest stocks:
- Altria Group is one of the biggest tobacco companies in the world. It owns 45% of the Cronos Group, making it a player in the Canadian cannabis industry. Although the company has had recent issues regarding e-cigarette regulation, it has maintained dividend payments increasing them for 50 consecutive years.
- Imperial Brands is another tobacco company with ties to cannabis companies including British marijuana research company, Oxford Cannabinoid Technologies and a Canadian cannabis company, Auxly Cannabis. While cannabis has not yet produced profits, it’s tobacco business is successful enabling it to pay current dividends of 5.4%.
- Innovative Industrial Properties is focused exclusively on the medical marijauna industry. It is a real estate investment trust (REIT) that buys properties and leases them to medical marijuana operations.This company’s dividend payments have skyrocketed over recent years and the dividend payment is currently at 4.3%.
Legalization across many U.S. states has caught the attention of the market. If you are interested in getting your foot into the cannabis market, these three stocks could be your best bet!