The cannabis industry has been growing at a massive rate over the course of the past few years, but some companies have managed to climb to the top of the market. Two of the companies that have stayed ahead of the curve have been Aurora Cannabis (NASDAW:ACBFF) and Scotts Miracle-Gro Company (NASDAQ:SMG). These two companies have helped to lead the charge for marijuana on a larger scale given that they are listed on the NASDAQ. Both companies have managed to cement a place for themselves in the overall market, helping to create a new niche for marijuana companies.
Aurora Cannabis has continued to be one of the largest players in the cannabis market, helping to grow the globally expanding marijuana market. Aurora has worked on cementing a place in the world market, while also helping to grow the already large Canadian market. Canada has had medical marijuana legalized for quite some time, which has led to a series of companies growing in the country due to the lax legislation. Since the company is based in Canada, they represent their largest market and continue to do so. With the country hoping to have recreational cannabis legalized sometime in the near future, the hopes are that Aurora will be able to continue growing at the rapid speed that they have thus far. The global recreation market it set to take off, and could reach as much as $5 billion this year.
The recreational sale of marijuana in Canada will help Aurora to build its business even more in the near future. In addition to having recreational marijuana, one of the biggest news pieces to come into the Aurora space has been the addition of making acquisitions and expanding facilities to help keep up with the increasing demand for marijuana in the country and beyond. The goal is to in the end have recreational stores that sell Aurora’s cannabis, so that they can be a fully vertically integrated company.
Scotts Miracle-Gro is another one of the companies that many people believe will continue to take off with the increasingly growing market on cannabis. Scotts does not have a traditional place in the marijuana industry as others who grow cannabis do. Rather, Scotts has helped to cement its place in the market by providing materials to help individuals grow cannabis and keep the market flourishing. According to one report, Scotts manufactures “fertilizer, hydroponics, and lighting systems that are must-haves for marijuana growers, both large and small.” This increasing need for product has helped to make Scotts one of the largest cannabis-involved companies in the market.
In addition to working on the growing side of marijuana, Scotts has also managed to acquire The Hawthorne Gardening Company, which has helped to provide it with more vertical integration. Hawthorne has helped to give Scotts almost 35% of its total revenue over the past year, which means that they are continuing to grow along the right path. Another interesting part of investing in Scotts Miracle-Gro is the dividends aspect. Scotts dividend yields around 2.33% which means that they are using around half of their earnings to fund the dividends. This ends up meaning that investors who are in the company can usually make a pretty decent amount on dividends alone.
Both of these stocks look as though they have very promising futures ahead. The marijuana market is growing at a very rapid pace and companies like these will hopefully be shot into the top end of the market as it continues to grow. The hopes are high that nationwide legalization in Canada and beyond will help to ensure that the market is able to grow to its fill potential in the near future.