We have successfully accumulated 100 shares of AT&T (T) and now we are moving towards accumulating our next company – Altria (MO).
We want to invest conservatively, no more risky trades in our portfolio. Thus I consider myself, as a CIO, a reasonably conservative investor. But I also would like to add some new technologies and new sectors to my portfolio.
One sector or industry we would like to start accumulating in some shares would be the cannabis industry.
In the past, I avoided investing in cannabis stocks mostly because they are traded on the OTC market and to me, they are difficult to analyze and research.
But recently, the Biden administration published their intent to decriminalize marijuana and allow medical marijuana nationwide. This would support this sector/industry growth beyond the current levels. Moreover, many good cannabis companies can up-list away from the OTC to any regulated market. And if that happens, big institutional investors such as mutual funds and ETFs will be allowed to invest in these companies. And with more money pouring in, there is huge growth potential.
But, I am unable to analyze these stocks on my own and I do not want to gamble and guess what the stock may do next. So I decided to start investing in a cannabis ETF. My candidate for accumulating in the cannabis industry is AdvisorShares Pure US Cannabis ETF (MSOS).
This ETF is also optionable and therefore I plan on selling strangles around this position.
Our next industry to enter is renewable energy. With the current government policy, the US will be heading towards clean, renewable energy. Thus, I expect growth in the next 4 years (and maybe beyond).
But again, I do not know which stock to pick and which stock would benefit from this trend. Therefore, I will be again investing in an ETF which is specializing in the Renewable Energy Industry.
In 2021, I will be accumulating shares of Global X YieldCo & Renewable Energy Income ETF (YLCO). And the good thing here is, that this stock also pays a nice 3% dividend. Unfortunately, it is not optionable, so I will hold this ETF to participate in renewable energy growth and receive dividends while waiting for the stock appreciation.
Another company in the renewable energy industry I am looking at to accumulate is Brookfield Renewable Corporation (BEPC). Currently, it pays a 1.16 dividend that translates to a 1.94% yield, and the stock is optionable. Our goal in 2021 will be to accumulate 100 shares of each mentioned company or ETF.
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