Our Conservative "Cannabis" Portfolio Performed Better In August (And YTD) Than Either Our MSO Or LP Portfolios

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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.

 

Our Conservative “Cannabis” Stocks Portfolio

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

1. Altria Group (MO): UP 9.7% in August
   • has a 45% stake in Cronos Group (CRON)
     • Cronos: 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 5.4% in August 
   • has a C$346M product development partnership with Organigram Holdings (OGI)
     • Organigram: 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): UP 3.3% in August
   • has a $100 million joint venture with Tilray (TLRY)
     • Tilray: 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 3.6% in August
   • has a 19.9% stake in Auxly Cannabis Group (CBWTF)
     • Auxly: N/C 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% in August 
   • has a 39% stake in Canopy Growth (CGC)
     • Canopy: 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

• Our Conservative “Cannabis” Stocks Portfolio was 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 were DOWN 14.0% in August and the 7 constituents in the American Cannabis MSO Stocks Portfolio were DOWN 16.0% in August. Together, they are only UP 1.1% YTD and yield no dividends.

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