JOE BIDEN WIN!? | INVEST IN CANNABIS NOW WITH 1 ETF! | GROWTH POTENTIAL + DIVIDENDS WHILE YOU WAIT!

JOE BIDEN WIN!? | INVEST IN CANNABIS NOW WITH 1 ETF! | GROWTH POTENTIAL + DIVIDENDS WHILE YOU WAIT!

#dividends #passiveincome #investing #cannabis #etf
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Cannabis stocks have soared in the last few days. Why? Because there is a good chance Joe Biden will become president next month. During the V.P. debate last week, His running mate, Kamala Harris clearly said that a Biden Presidency would decriminalize Cannabis.

Cannabis stocks like Canopy Growth, Aurora, Tilray, Aphria etc have taken an absolute beating ever since the Canadian Federal Legalization came and went in October 2018. These companies started reporting their quarterly results post legalization and were not great, mostly all losses as they are not profitable yet. So the stocks are trading at all time lows which means it’s time to invest right now

So back in April, I released 2 videos on investing in Cannabis.
The second video where I explain the best way to invest, was one of my most viewed videos, so I know there is a lot of interest in this. In that video I explain how investing in HMMJ, a Canadian ETF managed by Horizons, was the best way to go. The ETF was cheap back in April and has not really moved since then….until just now

Since HMMJ is an Index-based ETF, like VCN or SPY, you automatically get exposure primarily to the biggest and most valuable companies in the Cannabis sector in the safest way possible. Since you’re getting broad exposure within the sector, you don’t need to pick and choose individual stocks which can save you a lot of pain and heartache down the road in case your picks go bad.

So why Invest in Cannabis companies since none of them give a dividend?
WELL, A key reason why I invest in this ETF is that it provides a quarterly dividend. Since I am an Income investor, I only invest in stocks that generate passive Income. Like I explained in the video back in April, the ETF manages to provide a dividend because of “securities lending”. This is a common practice among ETF managers where they can lend out some shares to other investors or institutions who in return pay the ETF manager a commission and return the shares after the agreed upon timeframe which is usually very short.
Those commissions are then distributed to us, the investors as dividends. You can always read more on this yourself but here is a quick quote from the Globe and mail article published in June 2018:

“Due to a number of factors that include … volatility and the amount of free-market float and available lenders, many of the stocks in HMMJ can be lent out at higher-than-average lending rates compared to what is available for traditional large-cap equities,” says Mark Noble, senior vice-president with Horizons ETFs

Let’s quickly check out the stock price history so you can see what i mean in terms of growth potential and then we will quickly see what stocks are in the fund as well as the dividend history.
So let’s quickly summarize why HMMJ is a great idea:

1. , you have Income. So if you’re a Passive Income investor like me, it’s the most important criteria when it comes to investing. I don’t invest in anything that doesn’t provide a dividend.
2 Broad Diversification within the sector which gives you more safety and removes the need to pick and choose stocks yourself. I say broad diversification because there are also solid companies that are indirectly tied to Cannabis as well, like Scotts miracle grow and the Industrial REIT

And 3, enormous growth potential. So this is also a good option for you growth investors who want to buy low and sell high later on to make a nice profit. Not my style, but hey, to each their own.

So that’s it guys, i hope you decide to invest in HMMJ. Personally I think it’s a great idea for Income investors, Value Investors and Growth Investors.
I personally have 14k total invested in HMMJ. I’ve been adding money in there throughout the years and currently my avg share price is 9.31$ and my dividend yield is over 8%
So it’s much cheaper now, and the Yield is much higher as well like we just saw. It’s really a no brainer if you ask me
https://www.horizonsetfs.com/news/Blogs/Did-You-Know-That-HMMJ-Pays-Income
https://www.theglobeandmail.com/investing/education/article-a-marijuana-etf-that-pays-a-distribution-is-it-safe/
Music Credit to JHC BEATS
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