Ancillary pot stocks have continued to grab investor’s attention. This is especially true in the current state of the market. In the past few months, most stock traders have seen their portfolios decline. This is due to fears surrounding the coronavirus in addition to other factors that have been lingering in the cannabis industry. But, when there is a massive drop in value, it could also represent a time to get in when prices are low. Investors who trade marijuana stocks are quite used to volatility, which means that they know how to take advantage of rampant price swings.
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With that in mind, it’s safe to say that a lot of the pot stocks at the top may be worth avoiding for some time. These companies often are the most volatile simply due to their position in the overall industry. Because of this, many investors have decided to move money into ancillary pot stocks. These are in no way a completely safe bet, but oftentimes they can be much less volatile than the larger pot stocks. When it comes to ancillary pot stocks, there are many options. But, only a few have really captured widespread attention. The two pot stocks mentioned below are two of the most popular according to investors. Both have their pros and cons, but they also both represent interesting cannabis investments.
A Popular Ancillary Pot Stock
Innovative Industrial Properties (IIPR Stock Report) is considered to be one of the most popular ancillary pot stocks in the industry. The company works as a REIT, leasing properties to those who wish to grow cannabis. With this business deal, the majority of its contracts are in the five to ten-year range. That means that its profitability can be quite predictable. In its most recent quarter, the company reported having as many as 49 properties across 15 states in the U.S. 
Additionally, it has seen its revenue almost triple from its third quarter of 2019. Year over year, the company has produced growth of over 300% which is incredibly substantial. As we see, the company should have no issue continuing to increase its property count. In addition, if more markets around the U.S. become recreationally legal, IIPR could greatly benefit. If all of this doesn’t make the company enticing, it also pays dividends more than 4%. This dividend is also more than double what it was paying last year at the same time.
The Product Based Ancillary Pot Stock
KushCo Holdings (KSHB Stock Report) began its life as a producer of packaging made specifically for cannabis and cannabis products. Because of tough legislation surrounding how cannabis could be packaged, KushCo was able to make a killing in this side of the industry. But as the years went by, the company decided to try its hand in other areas of the market. It still does produce packaging, but now KushCo also produces and sells products to help consumers use their cannabis. In addition to this, it has made a large name in the vaporizer industry as well as the cannabis tech market. 
Because of this, the company has managed to pull in as much as 40% in year over year sales growth. This also represents a CAGR of 130% starting in 2016. But, investors should be a little bit wary because recent fears surrounding production in China could slow KushCo’s growth in the next few months. But, this could only be a short term issue which means that KushCo is still very much a pot stock to watch. As it moves further into other areas of the cannabis market, the company remains a key player among the ancillary marijuana stocks.
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