Pot Stocks For Dividend Growth Investors

If you follow the market at all, you’ve probably gotten wrapped up in the pot stocks craze lately. It’s hard to ignore trends like this when you see stocks essentially doubling their value in single trading sessions. Market caps in the marijuana space have grown to be larger than many of the S&P 500 names. Honestly, this trend seems crazy. We’re talking about companies trading for 100’s of times their sales…that’s right, sales, not even earnings (these companies aren’t known for their profitability quite yet). When I see fundamentals like that I quickly recognize a bubble. But then again, I also recognize the growth potential of the cannabis industry and I don’t like the idea of being left behind in these early stages. So, what’s a conservative, value based, income oriented investor to do?
The pot craze that we’ve seen in recent weeks reeks of exuberance to me. But then again, it’s the old guard names that many of us DGI investors know and love, like Coca-Cola (KO) rumored to be interested in getting involved in the cannabis market that have given validity to the industry and spurred further interest in buyers. To me, while it’s still highly speculative that any of these more established, cash flow positive, income-oriented names will get into the pot rush, I still like the idea of adding to them as a means of potentially gaining exposure to the marijuana industry than buying the highly speculative pot... Read more