Cannabis stocks have sparked controversy, but they are also proving to be highly profitable. In recent weeks, stocks like Canopy Growth (CGC) have surged, offering significant returns. This surge is fueled by growing support for legalization in the United States, with 88% of the public favoring it for both medicinal and recreational use. Florida is poised to legalize it for adult use, Germany has recently legalized it, and Europe may follow suit. The potential rescheduling of cannabis from Schedule 1 to 3 in the U.S. and positive mentions of legalization during the 2024 presidential elections further bolster optimism for the industry.
Innovative Industrial Properties (IIPR) is one of the recommended ways to invest in the cannabis boom while generating yield. Currently trading at $94.23, it is technically oversold and has begun to trend upward. It offers a secure 7.73% yield and recently paid a dividend of $1.82 on April 15. Strong recent earnings, with funds from operations (FFO) and revenue exceeding expectations, add to its appeal.
Trulieve Cannabis (TCNNF) presents another opportunity, especially with its recent weakness. Now trading at $10.74, it has the potential to reach $13.75. Legalization for adult use in Florida would significantly benefit Trulieve, as it played a significant role in pushing the initiative.
Aurora Cannabis (ACB) has also shown promise, rising from a low of $3 to a high of $8.88 before settling back to $6.46. It may continue to climb in anticipation of the Florida legalization vote. Aurora’s recent news about a letter from the National Conference of State Legislatures urging the attachment of the bipartisan SAFER Banking Act to the Federal Aviation Administration reauthorization bill further supports its positive outlook.
