Our Conservative “Cannabis” Stocks Portfolio Was UP In August

If you would like to make an investment in the cannabis sector but are wary of the volatility it exhibits then consider the 5 tobacco, beer, and distiller/vintner companies that have major investments in the cannabis sector. Their stock performances are steady week after week – and month after month – and in the end actually outperform our American MSO and Canadian LP cannabis portfolios.

By Lorimer Wilson

Below are how the 5 constituents in the portfolio performed last week, in descending order, and in August, along with their ownership in, and performance of, cannabis stocks, their dividend yields and the latest news, commentary and/or analysis, where available.

Conservative “Cannabis” Stocks Portfolio

1. Altria Group (MO): UP 2.5% last week; UP 9.7% in August
   • has a 45% stake in Cronos Group (CRON)
     • Cronos: DOWN 3.0 % last week; DOWN 7.3% in August
   • dividend yield: 7.59%
   • latest news, commentary and/or analysis:
     • Why Is Altria Group, the Best Dividend Aristocrat with Over 3% Yield?
     • Is Altria‘s High-Yielding Dividend Still Safe?
     • Altria Group Is a Trending Stock: Facts to Know Before Betting on It
2. British American Tobacco (BTI): UP 2.4% last week; UP 5.4% in August 
   • has a C$346M product development partnership with Organigram Holdings (OGI)
     • Organigram: DOWN 8.4% last week; UP 10.1% in August
   • dividend yield: 7.89%
   • latest news, commentary and/or analysis:
     • Are Investors Undervaluing British American Tobacco?
     • Hedge Funds Are Bullish on British American Tobacco – Here’s Why
     • British American Tobacco First Half 2024 Earnings: EPS Beats Expectations
3. Anheuser-Busch InBev (BUD): DOWN 0.4% last week; UP 3.3% in August
   • has a $100 million joint venture with Tilray (TLRY)
     • Tilray: DOWN 11.4% last week; DOWN 15.8% in August
   • dividend yield: 1.42%
   • latest news, commentary and/or analysis:
     • Why Hedge Funds Are  Crazy About Anheuser-Busch InBev 
     • AB InBev’s “encouraging” first-half – key takeaways
4. Imperial Brands (IMBBY): UP 0.1% last week; UP 3.6% in August
   • has a 19.9% stake in Auxly Cannabis Group (CBWTF)
     • Auxly: DOWN 3% last week; UP 28% in August
   • dividend yield: 6.54%
   • latest news, commentary and/or analysis:
     • Should Value Investors Buy Imperial Brands Stock?
5. Constellation Brands (STZ): DOWN 1.8% last week; DOWN 1.8% in August 
   • has a 39% stake in Canopy Growth (CGC)
     • Canopy: DOWN 16.1% last week; DOWN 31.4% in August
   • dividend yield: 1.68%
   • latest news, commentary and/or analysis:
     • Constellation Brands Is the Best Spirits Stock to Buy Now-Here’s Why
     • Constellation Brands distances itself from cannabis company Canopy Growth
       • Constellation intends to convert its stake in Canopy to a new category of shares that do not give voting power or the ability to collect payments from the company and will no longer have representation on Canopy’s board to eliminate the impact to their equity in earnings and do not intend to deploy additional investment in Canopy going forward.

Summary

• The Conservative “Cannabis” Stocks Portfolio was UP 0.5% last week, UP 1.2% in August and is now UP 5.7% YTD. In addition, the stocks in the Index have an average dividend yield of 3.3% for a gross return of 9%.
• In comparison, the 5 constituents in the Canadian Cannabis LP Stocks Portfolio and the 7 in the American Cannabis MSO Stocks Portfolio are, collectively, only UP 1.1% YTD and yield no dividends.

Thank you for reading the above article. I will update it weekly. Now, as a reward, here is a link to Money, Money, Money—It’s a Rich Man’s World!