This special program lets you own more shares of select cannabis stocks, for free…

Robinhood has been busy launching new features, one of which is fractional investing.

Instead of having to buy an entire share of a company like Amazon for $2,300, you could buy just $100 worth of Amazon stock. You can also invest as little as $1 in a handful of cannabis companies, which you can find more information about right here.

Now, Robinhood has rolled out dividend reinvestment programs (DRIPs).

Before, Robinhood only put the money from dividends back into your account.

That’s not bad for those who want to take a little bit of income, but utilizing DRIPs is a great strategy to receive more shares of a company without having to pay any additional money.

Here’s how it works.

The Benefit of Cannabis DRIPs

With companies like Innovative Industrial Properties (NYSE: IIPR) and Scotts-Miracle Gro Company (NYSE: SMG) paying dividends, you can use those dividends to buy more shares. And you don’t have to pay anything for those dividend payments to be reinvested.

It doesn’t matter if the dividend isn’t enough to buy an entire share; the DRIP will use the dividend payout to buy fractional shares. If you believe in the long-term outlook of a company and want to maximize your returns, a DRIP is a great tool to utilize.

For other brokerages, eTrade also offers DRIPs, so the customer service representatives at your brokerage will be more than happy to walk you through how to set one up if they offer it.

It can take less than a minute to set up.

Final Thoughts

Everyone has different risk tolerances, financial situations, and goals that they want to achieve.

With DRIPs, no matter your investing strategy, you can own even more shares of a company you believe in without having to pay for more stock.

Over time, that can really add up.

Take care,

How cbdMD Grew From $600,000 to $4 Million in Monthly Sales

We preach the importance of branding at the National Institute for Cannabis Investors because that’s part of the secret sauce of building a great company.dividend

Starbucks is more than just coffee; it’s successful because of the experience customers associate with the brand, which is all about convenience and consistency.

Apple doesn’t just sell computers and phones.

Apple’s branding talks about thinking differently. It sells the idea that you can create anything with its devices. Or that you can be transported to a different world thanks to the ease of listening to music or reading a book on an iPhone.

It’s the same in the cannabis industry.

Companies focusing on banding now are putting themselves in a position to obtain long-term success.

That’s why Executive Director Don Yocham recently chatted with the CEO of cbdMD.

You can watch the full interview here.


11 responses to “Own More Shares of Cannabis Stocks Without Paying More Through DRIPs”

  1. Charles Schwab will also reinvest dividends. It’s as easy as checking a box when you buy shares, and there are no commissions or service charges associated with the reinvestment. Overall, a great idea!

  2. I’m interested in the new medical device discussed by Neil. I don’t have a brokerage account and I’m looking for information on how to set up an account Can you lead me in the right direction ?

  3. I’m guessing that if Charles Schwab has DRIP, then TD Ameritrade does, or will soon? Since Schwab is acquiring TDA? I’m currently with TDA and would use the DRIP if its available.

    • Hi Thomas,

      Fidelity does offer a DRIP program. Under the “Accounts & Trade” section in your portfolio, you should see an option that says “Update Accounts/Features.” From there, there will be another option to select – Dividends and Capital Gains.

      That will let you set up a DRIPs for stocks that are eligible.

  4. I have a 401K account with Fidelity thru my employer so can I use them for a stock broker account?

Leave a Reply

Your email address will not be published. Required fields are marked *