This is One of Our Top Marijuana Dividend Stocks

One of our favorite marijuana dividend stocks is about to receive a huge boost in sales.

We’re talking about Scotts Miracle-Gro Co. (NYSE: SMG), the well-known worldwide leader in lawn and garden care that has become a must-have marijuana “pick-and-shovel” play.

Luckily for its investors, Scotts was early to board the marijuana train.

In 2015, Scotts’ CEO, Jim Hagedorn, purchased two companies that specialize in soil and fertilizer for cannabis growers. Then, one year later, he invested a 75% stake in Gavita International, a hydroponics equipment company.

Hydroponics is the method of growing plants without soil by using mineral nutrient solutions in a water solvent – a popular and highly effective way of growing cannabis, especially in densely populated areas.

As of December 2016, Scotts’ hydroponics business generated roughly $250 million annually, according to Bloomberg, and that number is expected to grow.

Since then, the company has also acquired leading brands Agrolux, Botanicare, General Hydroponics, and Vermicrop to capitalize on cannabis legalization.

And its shareholders have been handsomely rewarded.

Over the past two years, SMG stock has risen a solid 59%.

Add that to Scotts’ above-average 2.09% dividend yield, and it’s no wonder we’ve been recommending this stock to readers since September 2016.

“I like Scotts because the global crop value of hydroponically grown plants is expected to climb from $17 billion in 2013 to $24 billion by 2018,” said Money Morning Director of Technology & Venture Capital Research – and pot stock expert – Michael Robinson in June.

“That’s a 41% increase in just five years.”

And now the company has made another breakthrough investment in the marijuana space.

This time, to the tune of $72.2 million…

Scotts Miracle-Gro Is Amplifying Its Cannabis Industry Exposure

During a conference call on Nov. 7, the company announced its Q4 financials and revealed its latest acquisition, Can-Filters: a Canadian company with operations in Canada and the United States.

CEO Jim Hagedorn called the company “the top hydroponic brand in air movement and filtration systems.”

Scotts spent $72.2 million on the acquisition. According to NewCannabisVentures, Scotts Miracle-Gro has now invested $565 million since March 2015, beefing up its stake in the marijuana industry.

And the results have no doubt made investors jubilant…

According to the recent filing, Hawthorne (Scotts’ operating unit for hydroponics) produced sales of $287.2 million last year, up 137% from the previous year. Moreover, those figures represented an impressive 11% of overall corporate sales.

That sales figure is expected to grow as more states throughout the country, like California, fully legalize cannabis for recreational use.

CFO Randy Coleman implied the company should see 2018 sales rise about 15%, saying the company expects that “Hawthorne will continue to see double-digit volume growth.”

Make no mistake: A 15% surge in sales revenue will easily translate to gains in the stock price. You definitely want to own shares of SMG before that happens, because you may not see them at a better price.

— Casey Wilson

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Source: Money Morning