#6 - Scotts Miracle-Gro (NYSE:SMG)
Scotts Miracle-Gro (NYSE:SMG) is a different way to play the cannabis sector. The company doesn’t grow or distribute cannabis. Rather, they provide established cannabis companies with the means to do what they do. Scotts does this through Hawthorne Gardening. This is a separate business unit that sells hydroponics, lighting, and related equipment.
Last quarter, this unit reported 72% sales growth with $302.9 million in revenue.
It stands to reason that as more states begin to legalize medical and recreational marijuana, Scotts stands to be a benefactor. But the reason investors should be interested in SMG stock is that it isn’t just helping cannabis companies. It has an entire business unit that delivers over $1 billion in quarterly sales.
SMG stock is up 48% for the year. And investors can also get a dividend with the stock, and a secure one at that. In the last quarter, the company issued a special dividend of $5 per share, and it raised its dividend payments by 7%.
About Scotts Miracle-Gro
The Scotts Miracle-Gro Company, together with its subsidiaries, manufactures, markets, and sells products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. It operates through three segments: U.S. Consumer, Hawthorne, and Other. The company provides lawn care products, comprising lawn fertilizers, grass seed products, spreaders, and other durable products, as well as lawn-related weed, pest, and disease control products; and gardening and landscape products, which include water-soluble and continuous-release plant foods, potting mixes, garden soils, mulches and ground cover products, plant-related pest and disease control products, organic garden products, and live goods and seeding solutions.
More- Current Price
- $69.46
- Consensus Rating
- Hold
- Ratings Breakdown
- 2 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $75.83 (9.2% Upside)
