Cannabis Stocks Would Make a Big Mistake By Doing This 1 Thing

Cannabis stocks have plenty of challenges including trying to generate positive cash flow and struggling to break even.

Cash is a scarce resource for many companies in the sector, one that management teams shouldn't use unless it's going to result in growth or somehow improve their financials. That's why what cannabis producer Aphria (NYSE: APHA) said on its most recent earnings call was all the more puzzling.

As surprising as it sounds, the company's CFO Carl Merton mentioned the possibility of the cannabis producer distributing a dividend to its shareholders in light of its strong results. Aphria has recorded a positive adjusted earnings before interest taxes depreciation and amortization (EBITDA) for three straight quarters, and the company doesn't plan on that streak stopping anytime soon.

Source Fool.com