As public opinion continues to shift, investors are starting to look a which cannabis stocks to buy. Sure, we’re still waiting on federal legalization and possible rescheduling, but as we wait, more states are moving forward and more than 91% of Americans want to see legalization.
Abroad, it looks likely Germany will introduce a bill legalizing consumption in one of Europe’s biggest economies. In fact, according to CNBC “If approved by parliament, the bill could be implemented in phases between now and mid-2024. It would make Germany the world’s largest regulated national cannabis market and the first country in the EU to permit its commercial sale, with potentially sweeping implications for the bloc.”
Also, according to Marijuana Moment, the Congressional Progressive Caucus wants President Biden to direct federal agencies to “expedite” rescheduling and reinstate protections of state cannabis programs from federal interference.
Should we see further progress, here are just a few of the top cannabis stocks to buy.
AFC Gamma (AFCG)
With a dividend yield of 19.7%, AFC Gamma (NASDAQ:AFCG) is a commercial mortgage real estate investment trust ( ) that provides financing to the cannabis industry through loans. AFC Gamma is not a landlord. Instead, the company offers financing, such as mortgage and construction loans, to help cannabis companies.
In addition, the company just posted earnings. Its GAAP net income came in at $2.9 million with distributable earnings of $12.6 million. Also, for the full year, the company reported a GAAP net income of $35.9 million and distributable earnings of $49.9 million.
NewLake Capital (NLCP)
Or, look at NewLake Capital Partners (OTCMKTS:NLCP) as a cannabis stock to buy. With a yield of 12.43%, the REIT provides real estate capital to state-licensed cannabis operators. NewLake has “a portfolio of 32 cultivation facilities and dispensaries that are leased to single tenants on a triple-net basis,” which means tenants are responsible for paying monthly base rent, as well as insurance, maintenance, taxes and utilities associated with leased properties.
Earnings have been hot as well. In its fourth quarter, revenue jumped about 36% to $12.2 million. Net income attributable to common stockholders totaled $6.7 million. Funds from operations (FFO) was up 51% to $10.5 million, as adjusted funds from operation (AFFO) jumped 52% to $10.9 million. For the full-year 2022, revenue was up about 60% year over year to $44.8 million. FFO jumped 79% to $35.2 million and AFFO was up about 78% to $38.7 million.
Scotts Miracle-Gro (SMG)
With a dividend yield of 3.45%, Scotts Miracle-Gro (NYSE:) may be one of the best cannabis-related stocks on the market. The company manufactures and sells consumer lawn, garden and pest control products including hydroponics equipment and cultivation lights for indoor gardeners. The company also has great exposure to the cannabis industry with its subsidiary Hawthorne Gardening.
Better, the company has been actively acquiring other companies for greater exposure to cannabis. In fact, it acquired Sunlight Supply, the largest distributor of hydroponic products in the U.S. for $450 million. It also acquired Luxx Lighting for $215 million, and Liberty Bags for $10 million. They all became part of Scotts Miracle-Gro’s Hawthorne Gardening subsidiary, which supplies the cannabis industry and other horticulture.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.