We’re in a thrilling time for the cannabis industry. As more and more regions end prohibition and embrace legalization – including states across the U.S., all of Canada, and countries around the world – the market is developing and investors are seeing a rising number of opportunities to get involved and score big.
But investors are also understandably wary of certain aspects of the industry. The legal challenges it faces, as well as the simple fact that it’s a new and untested market, has made some investors who are eager to get into the action seek methods of protecting their outlay. One such method involves investing in a cannabis stock that pays dividends. At this point, there are only a handful of companies that have seen the success necessary to offer this, including Invictus MD (OTC: IVITF) (TSXV: IMH).
Protect Your Investment by Earning Cannabis Dividends
In case you’re unfamiliar, a dividend is essentially a regular payment out of a company’s profits that are given to stockholders. There is obviously more to it than that, but for our purposes here that’s all you need to know.
So essentially, you invest in a cannabis stock, the company grows, and you reap regular payments rather than waiting until you sell-off to see returns. This is a great way to bring in money consistently while offsetting market fluctuations.
But for a company to pay dividends, it must already be seeing a profit. At this stage in the cannabis industry’s development, this is rather rare – it takes time for companies to go from red to black.
Why Invictus MD Is Able to Pay Dividends
So why has Invictus MD been one of the few cannabis stocks to pay dividends? Simply put, it’s because the company has made a number of smart business moves.
A couple of years ago, Invictus MD (OTC: IVITF) (TSXV: IMH) acquired a 20% stake in the hydroponic service company Future Harvest, and over time they’ve increased their ownership in the business. Future Harvest proved to be highly successful, resulting rapid revenue increases, and prompting Invictus to create a spinoff company that will double the number of its shareholders’ stock. Then a smart sale of Future Harvest’s lightening division brought in a 350% ROI (in just 11 months), the proceeds of which not only allowed the company to grow its fertilizer division, but to pay out $1 million in dividends to shareholders.
As mentioned above, this kind of dividend payout is extremely rare in the cannabis industry, and as it stands now you can count the number of companies that do pay dividends on one hand – Invictus is one such company.
And what’s more, Invictus’s shareholders are poised to see ongoing dividends as the company continues to grow and prosper.
Bottom line – investors who hold stock in cannabis companies that pay dividends are already seeing best-in-market returns, and they’re positioned to enjoy further payouts as the industry continues its expansion.
So if you’re looking to invest and earn in the cannabis industry, the smart money is on the few companies that are already paying dividends.
Disclaimer: Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Civilized is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Civilized may be compensated for its services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two.