After a dismal year for marijuana stocks, the markets were refreshingly positive during New Year’s Eve trading. With a one day break for the holiday, investors will be carefully considering their options for 2020. Any alternative investor that is even remotely interested in marijuana stocks should consider the Horizons Marijuana Life Sciences Index ETF (TSX: HMMJ). It has a strong dividend return, and plenty of potential for growth as the legal cannabis market continues to expand.
This ETF is bargain priced today, despite climbing over 7% on the last trading day of 2019. Even with its recent growth, it still provides a strong yield, thanks to the $0.26 dividend. There has been good news in the marijuana market lately. Canada is taking steps to curb black-market sales, which will benefit producers and retailers. More American states are legalizing, with Michigan and Illinois the latest to do so.
This ETF is comprised of North American companies that are engaged in the marijuana market. This includes producers, distributors, sellers, and ancillary companies. Listed on the Toronto Stock Exchange, shares in the fund are readily available through U.S. brokerages.
The global medical marijuana market is expected to grow to a value of $32.40 billion by 2025. The legal recreational market will add billions more on top of this. Any investor wanting to be part of the action, but with a diversified holding, can consider this ETF for 2020.
- 52 Week Range: $8.08 – $23.87
- Fund Dividend: $0.26
- Dividend Yield: 00%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.