Ancillary pot stocks are a stronghold in the industry. These companies offer a wide variety of resources for investors. One of the main reasons that so many investors choose ancillary marijuana stocks is the volatility factor. If we look at the top companies in the cannabis industry, we see a high correlation between size and price swings. A large amount of these top pot stocks are hit hard by any news or other shifts in the market. While the pure-play pot stocks may be high in volatility, we see that the ancillary companies have less correlation to these rampant price swings.
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This is due to ancillary pot stocks being less directly impacted by factors such as legislation or changes in demand for cannabis. This is not to say that they aren’t affected, but it is undoubtedly less given the market they are in. Some of the ancillary markets to consider are areas such as money transport, REITs, grower supplies, product suppliers and more. These companies offer a wide breadth of an investment opportunity that is different than traditional pot stocks. With this in mind, these two pot stocks continue to be key companies in the ancillary market.
A Leading Ancillary Pot Stock
KushCo Holdings (KSHB Stock Report) is a pot stock that has transitioned quite a few times within the industry. The company began as a producer of packaging supplies for cannabis companies but quickly noticed the growth in other ancillary areas of the industry. In the present day, the company has become a major provider of various vaporizers, cannabis accessories and more. In the past three years alone, we have witnessed an annual growth rate upwards of 133%. 
Looking forward, the company aims to be a part of the growth that is projected for the accessories market. Additionally, the company has quite a unique opportunity in Canada as companies there are looking for these ancillary services and product providers. Just like most other pot stocks, KushCo has not yet turned a profit. But, investors should remain watchful as we await the company finishing out its current quarter.
The Well Known REIT Pot Stock
Innovative Industrial Properties (IIPR Stock Report) is a well talked about ancillary pot stock for a few good reasons. In short, the company operates by buying and leasing properties to be used by cannabis-based businesses. IIPR is one of only a handful of pot stocks to be producing a profit in the present day. The company reports as much as 160% in year-over-year earnings for the last quarter of 2019. 
Because of this, many investors have taken note of the company as a solid alternative choice. If all of this wasn’t enough, the company offers investors a very healthy dividend in the name of around 4.5% yearly. The main goal for IIPR is to figure out how to continue growing as it is an extremely capital intensive business. But with so many investors paying attention, this shouldn’t prove to be too large of a challenge moving into the near future.
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