Top cannabis stocks to buy could see higher highs. Granted, cannabis hasn’t been legalized federally. However, many more U.S. states have been aggressively legalizing its use. According to Pew Research, about 91% of Americans want to see legalization. In addition, we could see a firestorm of cannabis legalization throughout Europe.

For one, Germany is expected to introduce a bill that could greenlight consumption in one of Europe’s biggest economies if passed. In fact, “If approved by parliament, the bill could be implemented in phases between now and mid-2024. It would make Germany the world’s largest regulated national cannabis market and the first country in the EU to permit its commercial sale — with potentially sweeping implications for the bloc,” added CNBC. Even France is undergoing a trial cannabis program, providing free medical cannabis treatment to 3,000 patients.

With time, we could see cannabis legalized worldwide, including at the federal level in the U.S. That being said, investors may want to consider the following cannabis stocks to buy.

ETFMG Alternative Harvest ETF (MJ)

An image of different forms of medical marijuana

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Starting off this list of hot cannabis stocks to buy is an ETF. With any hot investment, ETFs are some of the best ways to diversify at low cost. For example, with an expense ratio of 0.75%, the ETFMG Alternative Harvest (NYSEARCA:MJ) tracks global medicinal and recreational cannabis stocks. Some of its top holdings include Tilray Brands (NASDAQ:TLRY), Canopy Growth (NASDAQ:CGC), Cronos Group (NASDAQ:CRON), AFC Gamma (NASDAQ:AFCG), and Organigram Holdings (NASDAQ:OGI).

AFC Gamma (AFCG)

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Or, you can always get paid to wait for the cannabis recovery with AFC Gamma. With a dividend yield of 19.24%, AFC Gamma is a commercial mortgage real estate investment trust that provides financing to the cannabis industry through loans. AFC Gamma is not a landlord. Instead, the company offers financing, such as mortgage and construction loans, to help cannabis companies. After all, thanks to federal laws, companies can’t get regular financing from banks.

In addition, the company also just posted earnings. Its GAAP net income came in at $2.9 million, or 14 cents per share, with distributable earnings of $12.6 million, or 62 cents per share. Also, for the full year, the company reported a GAAP net income of $35.9 million or $1.80 per share and distributable earnings of $49.9 million or $2.51 per share.

Innovative Industrial Properties (IIPR)

With America Turning Green Things Only Can Get Better for Aurora Stock

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Another hot cannabis stock to consider is cannabis REIT, Innovative Industrial Properties (NYSE:IIPR). With a yield of about 10%, IIPR is a real estate investment trust with 110 properties and approximately 8.7 million rentable square feet leased to state-licensed cannabis operators.

Also, earnings have been solid here, too. For example, the company saw total revenues of about $276.4 million. It also saw net income attributable to common stockholders of approximately $153 million. And adjusted funds from operations of about $233.7 million, representing increases of 35%, 36%, and 34% over 2021, respectively. For its fourth quarter, the company saw total revenues of approximately $70.5 million, a 20% jump year-over -year.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Ian Cooper, a contributor to, has been analyzing stocks and options for web-based advisories since 1999.

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