Marijuana Trends & Articles

Looking For Long Term Marijuana Stocks To Buy? 2 With Dividends For Shareholders

Possible Long Term Investments In The Cannabis Industry

Cannabis Stocks In Todays Market

As March continues many top marijuana stocks are beginning to climb higher in the market. After a nice rally in the cannabis sector on March 16th, most leading cannabis stocks pulled back to close lower in trading. Since reaching new highs in February the marijuana sector saw a sharp downtrend in the market. In reality, this has left some top pot stocks at better levels for investors to start a position in the cannabis market.

Depending on your trading style there are many different stocks in the cannabis sector to choose from. At the present time, many investors use day trading and swing trading methods in the sector. This is mainly because cannabis stocks are known for extreme market volatility. But there are places in the cannabis sector that have shown more stability in the past. One area that has delivered gains and been stable in the market is ancillary marijuana stocks.

By definition, ancillary marijuana companies are companies that support the cannabis industry but do not touch the actual cannabis plant.  For example, GrowGeneration Corp. (NASDAQ: GRWG) is a hydroponic and gardening supply center that has grown alongside the cannabis market in the U.S. In 2020 GRWG stock saw more than 800% gains in the market. additionally, the cannabis stock has also been more stable than vertically integrated marijuana stocks. In essence, making these types of pot stocks better for longer-term holds in the market.

Long Term Growth Potential In The Cannabis Industry

Recently the cannabis industry has been showing a rapid growth in the U.S. and across the globe. Currently, many American cannabis companies are reporting strong revenue increases for 2020. In many cases, this is a result of substantial expansion into key markets nationwide and increasing cannabis demand in the U.S.

As more prospects for legalization like New York and federal cannabis reform continue to be possibilities in the near future investors see growth in the market. Another area of great importance in the sector is the market for medicinal cannabis.  Generally speaking, cannabis for medical use will be a large portion of the marijuana industry in the future. In fact, annual legal sales of medicinal cannabis are estimated to grow to $ 16.3 billion by 2025.

To compare in 2019 sales are $5.9 billion showing a substantial growth in a short span of time. With the intent of finding marijuana stocks in both these markets, we can begin to research cannabis companies. Some of these companies are very well positioned in the cannabis industry and could have long-term potential for investors. With this in mind let’s take a look at 2 possible marijuana stocks to invest in for long-term holds.

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Marijuana Stocks To Watch:

  1. Innovative Industrial Properties, Inc. (NYSE: IIPR)
  2. AbbVie Inc. (NYSE: ABBV)

Innovative Industrial Properties, Inc.

Innovative Industrial Properties, Inc. is one of the only real estate companies focusing on leasing properties solely to the regulated U.S. cannabis industry. At the present time, IIP owns 68 properties across 18 states nationwide. On March 11th the company announced the acquisition of a property in Texas and the expansion of a real estate partnership with Parallel a leading well-being cannabis company.

In February IIP released Q4 and full-year 2020 results that fell short of analyst’s expectations. Although the company generated total revenues in 2020 of approximately $116.9 million up 162% from 2019 it was short of the mark. In addition, IIP declared a dividend to shareholders totaling $4.47 per share a 58% increase from 2019. ON March 15th IIP declared its first quarter 2021 dividend of $1.32 per share. Because of its rapidly increasing dividend and fairly stable market movement IIPR stock has some long-term appeal.

IIPR stock is up 5.20% year to date and has a high of $222.08 back in February.  Currently, the stock closed trading on March 17th at $192.14 and has been recovering some recent losses in the month. According to analysts at CNN Business IIPR stock has a 12-month median price target of $219. In essence, this would be a 13.67% gain from current levels. Because of its dividend and stable market performance IIPR stock could be one of the best marijuana stocks to invest in for the long term in the cannabis industry.

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AbbVie Inc.

AbbVie Inc. is a company delivering innovative medicines to help solve some of the world’s serious health issues today and in the future.  The company focuses on several key areas of the therapeutic market like immunology, oncology, neuroscience, eye care, virology, women’s health, and gastroenterology. For some history, Abbott acquired Solvay’s pharmaceutical division in 2010 and took on Marinol as well. In detail, Marinol was the first FDA-approved cannabis drug on the market. Essentially Doctors prescribe Marinol to patients with nausea and vomiting from cancer medications also people with AIDs use it to combat lack of appetite.

In February AbbVie reported Q4 and full-year 2020 financial results that show strong net revenues of $45.804 billion. This is an increase of 37.7% on a reported basis and shows strong growth for the company. In addition, Abbvie issued its EPS guidance for 2021 of $6.69 to $6.89. The company expects to deliver adjusted diluted EPS for the full-year 2021 of $12.32 to $12.52. Also, important the company has an annual dividend of $5.20 per share with a yield of 4.69%.

ABBV stock is up 3.45% year to date with a high of $113.41 in January.  Currently has opened trading op March 17th around $104 down over 5% to start the trading day. According to analysts at TipRanks ABBV stock has a 12-month average price target of $126.50. this represents a 21.23% gain from current levels. For this reason, ABBV stock could be a good cannabis stock to buy for long-term gains.

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