Our Conservative Cannabis Stock Portfolio Continues To Outperform

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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 Canadian LP Cannabis Stocks Portfolio.

Our Conservative “Cannabis” Stocks Portfolio
 

Below are how the 5 constituents in the portfolio performed w/e Sept. 13th, in descending order, and MTD, along with their ownership, and performance, of cannabis stocks, their dividend yields and the latest news, commentary and/or analysis, where available.

1. Anheuser-Busch InBev (BUD): UP 3.3% w/e Sept. 13th; UP 5.6% MTD
   • Has a $100 million joint venture with Tilray (TLRY)
     • Tilray: UP 7.4% w/e Sept. 13th; UP 1.8% MTD
   • Has a dividend yield of: 1.3%
   • Latest news, commentary and/or analysis:
     • Why Hedge Funds Are  Crazy About Anheuser-Busch InBev 
     • AB InBev Stock has Gained 12% Since May: Should You Buy, Hold or Sell?
2. British American Tobacco (BTI): UP 1.5% w/e Sept. 13th; UP 4.3% MTD
   • Has a C$346M product development partnership with Organigram Holdings (OGI)
     • Organigram: UP 6.9% w/e Sept. 13th; UP 1.1% MTD
   • Has a dividend yield of: 7.6%
   • 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. Constellation Brands (STZ): UP 1.4% w/e Sept. 13th; UP 4.9% MTD 
   • Has a 39% stake in Canopy Growth (CGC)
     • Canopy: UP 6.9% w/e Sept. 13th; DOWN 8.1% MTD
   • Has a dividend yield of: 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.
4. Imperial Brands (IMBBY): UP 0.5% w/e Sept. 13th; UP 2.2% MTD
   • Has a 19.9% stake in Auxly Cannabis Group (CBWTF)
     • Auxly: No Change w/e Sept. 13th; No Change MTD
   • Has a dividend yield of: 6.54%
   • Latest news, commentary and/or analysis:
     • Imperial Brands Sees Strong Revenue Growth Amid Market Challenges
5. Altria Group (MO): DOWN 1.4% w/e Sept. 13th; DOWN 1.5% MTD
   • Has a 45% stake in Cronos Group (CRON)
     • Cronos: UP 2.3% w/e Sept. 13th; DOWN 3.5% MTD
   • Has a dividend yield of: 7.7%
   • Latest news, commentary and/or analysis: 
     • Altria Stock Sinks As Market Gains: What You Should Know

Summary

• Our Conservative “Cannabis” Stocks Portfolio was UP 1.3% w/e Sept. 13th, is UP 4.0% MTD and is now UP 9.9% YTD with an average dividend yield of 3.1% for an annual return of 13.0%.
• In comparison, the 5 constituents in the Canadian Cannabis LP Stocks Portfolio were UP 6.4%, on average, w/e Sept. 13th, are now DOWN 4.3%, on average, MTD and are now only UP 4.1%, on average, YTD.

Conclusion

The above summary shows that our Conservative "Cannabis" Stocks Portfolio, on a current annual basis, has outperformed the Canadian Cannabis Stocks Portfolio by more than a 3 to 1 margin! As such, the Conservative "Cannabis Stocks Portfolio is just that - a conservative cannabis investment.

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