Constellation Brands remains one of the best ways to invest in cannabis…

I told our members back in July that one of the “safer” ways to invest in Canopy Growth Corp. (NYSE: CGC) was through buying shares of Constellation Brands (NYSE: STZ).

Constellation owns a 38% stake in Canopy, so it has skin in the game and exposure to the cannabis market.

But outside of its stake in CGC, it’s also the maker of Corona and owns whiskey, vodka, and tequila brands. That just gives it another revenue source and a defensive moat.

However, Constellation is already looking ahead to the future, and it has sold off some of its wine brands that retail for under $11 so that management can focus on selling more lucrative adult beverages.

Overall, I believe that this is a stock you can retire on.

As you can see from the chart to the right, the stock price took a bit of a dip in January, but it’s been rebounding ever since.

And while newer investors like to focus on the share price and say it’s expensive, that doesn’t matter. Focus on accumulating shares of a quality company, and it will add up over time.

Especially considering that Constellation offers something that other cannabis companies can’t right now…

This Is What Makes Constellation Brands a Winner

Overall, STZ is a stock to buy more and more of when your wealth increases. When you see the stock price dip, it’s great to build an even bigger position.

And what Constellation offers that other cannabis companies don’t – outside of Innovative Industrial Properties Inc. (NYSE: IIPR) – is a dividend.

Dividends are great because they are versatile and can help investors during turbulent markets.

For example, you can use the dividend to supplement your income. That’s going to be money put into your trading account that you can cash out or use to buy more cannabis stocks. Constellation is currently paying out $3 per share, which is a yield of 1.55%.

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If your trading service offers it – and most of them do – you can also put those dividends into a Dividend Reinvestment Program (DRIP).

With a DRIP, your dividends will automatically be used to buy more shares of the company, and you won’t have to pay a dime for them.

A Cannabis Aristocrat

Looking ahead, Constellation is playing the long game to become a “Dividend Aristocrat,” which is a company that must have a minimum of one dividend increase annually for at least 25 years.

Being on that list carries a lot of weight with risk-averse investors.

For instance, the Retirement System of Alabama has a total of $39 million worth of Constellation shares, and it even increased its position by 201,827 shares recently. When you have this kind of backing, it helps bring a lot more stability to stocks.

Again, this is a stock you are going to want in your portfolio forever.

Greg Miller
Executive Director, National Institute for Cannabis Investors

P.S. The CBD market is skyrocketing. In fact, analysts are even predicting it to grow more than 15 times FASTER than the cannabis industry as a whole this year. And if you play your cards right, you could pocket a fortune – because as a result of this landmark event, sales in the hemp CBD market are projected to hit $22 BILLION by 2022. That’s why we’ve pinpointed two under-the-radar companies with the potential to turn a small investment into once-in-a-lifetime gains. Find more details here.


9 responses to “Constellation Brands Is Still a Company to Own Forever”

  1. With the recent drop in price of Canopy, do you feel like this would be a good time to be able to get future shares of Constellation on the cheap?

  2. this is the kind of info i understand, thankyou
    i’m new so if you don’t explain what to do i do nothing
    arthur j

  3. South African company Naspers held a significant portion of it’s assets in China’s TenCent (TCEHY) stock – and has not been able to increase it’s share price in years despite the growing value of it’s TenCent holdings. What makes you think STZ will be able to unlock the value of it’s holdings in CGC, and grow STZ share price if Nasper’s couldn’t with it’s holdings in TCEHY?

  4. I wish ONCE that Gtrg would respond to some comments here. He says he likes CGC, but right now it stinks. MY QUESTION: DO (YOU PUT YOUR OWN MONEY INTO CGC & STZ?

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