Vape stocks are the next big thing. The vaping market has come alive for a variety of reasons. The market is currently predicted to reach $50 billion in value by 2025, but the sky is the limit. Now is the time to invest in these stocks.
If you’re not sure about it, here are the reasons why you should be investing in vape stocks.
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Market Growth
Look at the figure we just wrote down. That’s one source, but you can go to any reputable financial website and they will have similar predictions. A report by Business Insider is more optimistic and says by 2025 the electronic cigarette market will be worth $61 billion.
These growth numbers are incredible and only mirror what has already happened thus far. It’s not too late to get on the gravy train!
Marijuana Market Growth
People forget that vaping also includes legal marijuana. Many people, particularly in the US, prefer to vape with marijuana instead. Companies are thinking about how they can get into this market.
And this market is set to explode as more and more parts of the world legalize marijuana, which is an unstoppable movement. For example, one study says that the $6 billion marijuana market could rise to $30 billion by 2021.
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Naturally, this isn’t all vaping, but a significant part of it will be, and that’s going to send vape stocks higher.
The Tobacco Market is Showing Bad Signs
Tobacco has always represented a fantastic dividend stock for investors starved of a regular income. But the pressure is only going to keep growing.
Profits may be higher, but that hides the fact that sales growth is slow. From 2002 to 2016 global cigarette sales by volume only increased by 1.3%. For a 14-year period that’s an incredibly slow increase in sales. Furthermore, the profits are mainly coming from increasing retail values.
Sooner or later this gravy train is going to come to an end. That’s why more and more tobacco companies are investing in electronic cigarettes and legal marijuana. They know they have to diversify.
Mergers are Happening
Tobacco companies are also starting to think about mergers. In 2016, British American Tobacco started its attempt to buy out the remainder of Reynolds, where it already holds over 40% in stock. There are also rumors that other big companies are also considering mergers.
This is only going to make these companies more powerful, which will inevitably lead to more valuable vape stocks. But you must get in before the merger happens.
Do You Want Dividends?
We touched upon this issue above, but it’s yet another reason to invest in tobacco stocks. Tobacco companies are investing heavily in vaping and legal marijuana. They’re also historically one of the best stocks to own if you want a regular worthwhile dividend.
There’s no reason why this is going to change. It’s one of the reasons why people are still willing to invest in tobacco stocks, even if they don’t agree with smoking themselves.
If you need to add some dividend stocks to your portfolio, this is the investment to make.
Last Word – Why Now is the Time
Now is the time to invest in e-cig stocks because many of the benefits will only be acquired by investing in good time. Most investors are going to start investing in vape stocks in the coming years. By then it will be too late and the price will rise quickly.
For now, stocks are relatively stable. The price isn’t going to rocket anytime soon. Investors who look to the medium-term and long-term are set to reap some huge rewards. And that’s on top of the regular dividends they can expect quarter after quarter.
Do you think investing in vape stocks is a good idea?
