2 Cannabis Stocks That Could Be Millionaire Makers
The marijuana industry is evolving at an incredibly fast pace in the U.S. and Canada. Many American states' markets have handily beaten old sales highs in 2020. Illinois has seen a whopping $431 million in total sales since legalization took effect on Jan. 1. The combined sales in the state (medical and recreational) came in at almost $100 million in September alone. Meanwhile, in Canada, where the illicit cannabis market has historically dominated the licit market, legal sales of marijuana dominated illegal sales for the first time ever this summer.
Despite the jump in sales in both markets, Canadian marijuana stocks have not seen quite the same revenue gains as their U.S. counterparts this year, as factors like regulatory holdups weighed heavily on business north of the border. But there are a few Canadian companies whose futures are looking bright. Canopy Growth (NYSE: CGC) boasts the highest market cap in the industry ($6.9 billion), and is growing sales with new products. Its cannabis derivatives have quickly captured the newly legalized Canadian market, and Canopy threatens to expand into the U.S. with the help of its strong partnership with beverage giant Constellation Brands (NYSE: STZ).
Meanwhile, in the U.S., an unconventional marijuana stock is catching investor attention. Innovative Industrial Properties (NYSE: IIPR), a real estate investment trust (REIT), leases out properties to pot companies. Innovative earns most of its revenue through rental income and pays the majority of its earnings back to shareholders in the form of dividends. Let's take a closer look at what factors could deem both of these pot stocks "millionaire makers."
Source Fool.com
