When most people think of marijuana stocks, the last thing they think of is dividends. For the most part, this is an accurate characterization. The legal marijuana industry is still very young, and new companies in growing industries need money to expand. Therefore, they just don’t have excess capital to pay out as dividends yet. This doesn’t instantly make them bad investments, it just means that as a shareholder you are hoping to make money through capital appreciation (a rising stock price) as opposed to dividend income in the near term.
That said, some investors love dividend stocks, and lucky for those investors there are a few companies in the cannabis space that pay dividends or that have paid them in the past. These are the top dividend-paying marijuana stocks. All figures are as of July 7, 2017.
Abbvie Inc. (NYSE: ABBV)
Abbvie Inc., manufacturer of Marinol (dronabinol), has been paying quarterly dividends consistently since the company was spun out of Abbott Labs in 2013. At the time of this writing, Abbvie’s annual dividend yield was 3.56%. The company’s most recent dividend was $0.64/share and was paid on May 15th.
Associated British Foods Plc. (LON: ABF) (OTC: ASBFY)
Although Associated British Food’s main business is the processing and manufacturing of food, their wholly-owned subsidiary British Sugar cultivates cannabis for the production of GW Pharmaceutical’s Epidiolex. The company has been paying semi-annual dividends consistently (as is British custom, versus the U.S. standard of quarterly payments) for at least the last 17 years. At the time of this writing, Associated British Food’s annual dividend yield was 1.78%. The company’s most recent dividend was £0.2645/share (~$0.34) and was paid on January 13th.
Compass Diversified Holdings Inc. (NYSE: CODI)
Compass Diversified Holdings owns a majority interest in hemp food producer, Manitoba Harvest. At the time of this writing, Compass Diversified Holdings’ annual dividend yield was 8.23%. The company’s most recent dividend of $0.36 was paid on April 27th.