2020 was certainly a turning point for cannabis stocks. It was when weed was legalized in Canada for recreational purposes. Michigan became the tenth state in US to legalize cannabis while Utah and Missouri joined the group permitting medicinal marijuana. All this and much more signal that 2019 would emerge as a better year for weed stocks. Canada is likely to come up with regulations regarding marijuana edibles. Prospects for the US government to leave cannabis legalization to states seem to be better. But amidst all, here is something you would like to know about the top marijuana stocks to buy in 2021.
Ranking as the top premium beer company with best-selling brands Modelo and Corona, Constellation Brands has created an industry-leading growth due to its high-end beers. It is also a cannabis stock with its 38 percent ownership stake in Canopy Growth, a huge Canadian weed producer. The main benefit of buying this brand is that its wine, beer and spirits business brings a lot of stability and it also seems to benefit from the massive global marijuana industry growth. Constellation also pays out a good dividend yield of 1.6 percent.
Innovative Industrial Properties
Basically a real estate investment trust with specialization in medical cannabis, Innovative Industrial Properties is an attractive option for marijuana investors. REITs spread the risk across leaseholders and even when one or two fail, it does not affect the entire investment. Innovative Industrial Properties presently owns nine properties which are either indoor facilities or greenhouses cultivating cannabis. There are some major growth opportunities for this company including a lot of room to expand in the states where it operates and expanding in other states. It has a solid balance sheet. It has no debt and is profitable. It also offers a nice dividend yield of 2.69 percent.
Liberty Health Sciences
While it may seem to have a limited scope at first sight, Liberty Health Sciences has a story. The company is involved in making medical cannabis and running dispensaries in Florida which is on the verge of becoming the third largest weed market in the US. This company is one of the 14 licensed producers in the Sunshine State. This opportunity alone makes Liberty Health Sciences an attractive undervalued stocks option for investors. The current market share of the company is about 15% and the expansion of weed production facility and the opening of more dispensaries would boost it to 25%. The company plans to expand to states with good markets for medical marijuana.
The top supplier of packaging products for the marijuana industry in the US, KushCo Holdings offers vaporizer cartridges, pop-top bottles and containers designed for cannabis items. Being the go-to source for cannabis-related packaging solutions, KushCo profits from the expansion in the market. The company expects to grow in Europe and Canada. It recently acquired Zack Darling Creative Associates, offering a chance for growth in marketing, branding and e-commerce solutions for the marijuana industry. Long-established relations with weed growers and expertise at requirement fulfilment give the company an advantage over the competition.