Cannabis stocks are made up of multiple companies, directly and indirectly, involved with the cannabis market. The diversity of companies making up the marijuana industry means that you have a lot of choices when it comes to stocks or ETFs. In other words, you are investing in a cannabis stocks pick, you are investing in a marijuana stocks pick.
Because the cannabis industry is still at an early stage, it may be difficult to find pure-play marijuana stocks that are profitable. Like any investment, buying shares of stock in the industry comes with risks, opportunities, and regulations. Done right, investing in cannabis stocks is a great way to diversify your portfolio while this exciting industry continues to grow.
If you choose to invest in marijuana stocks and are looking for companies that pay dividends too, there are several options. As you can see, stocks paying dividends can be an incredibly attractive investment. When you are comparing stocks that pay dividends, be sure to compare dividend yields, not just dividend prices. Whether you are looking to invest in top-growth stocks, or are just interested in finding the best bargain stocks to buy, chances are that you will be able to find something in this sector to suit your needs.
To help you pick out the best cannabis investments, Forbes Advisor takes a closer look at 14 stocks and funds, along with some less-dark offerings you are probably better off avoiding. This page provides a listing of cannabis-related stocks and funds that are traded publicly. The stocks in this watchlist are weighed equally when added. Yahoo Finance will continue adding names as companies invest in the marijuana industry and make a move.
If you are in the pot stocks market, you likely know that the last year has not been pretty, but optimism is still running high in this space, with pot stocks trading at a fraction of their fair value. Surprisingly, even though pot stocks have not provided the long-term returns investors were looking for in the last five years, the U.S. sector is remarkably healthy — and this is despite a continued lag of federal legalization. As states and entire countries decriminalize or legalize cannabis and/or its components, opportunities are growing for entrepreneurs and existing businesses. An increasing number of countries are considering the legalization of recreational cannabis, which could further boost cannabis stocks.
The growth could push the Aurora Cannabis stock price higher, particularly as more U.S. states consider legalizing marijuana for recreational use. As a pure-play cannabis stock, GrowGeneration stands to gain from potential cannabis market growth. Canopy Growth, headquartered in Canada, operates within the cannabis stocks space, producing medical marijuana products. Show Source Texts
Spirits are Constellation’s primary business, but as with that stock, the firm is diversifying into marijuana through investments in Canopy Growth (CGC), the Canadian marijuana producer. ESG investors will want to take note that, once again, this stock holds significant ownership in Canopy Growth (CGC). Show Source Texts
The company shows a 19.5% ownership stake in Canadian cannabis producer OrganiGram Holdings (OGI) Canadian cannabis producer OrganiGram Holdings (OGI) is the one that has British American Tobacco in this marijuana stocks lineup. As Argus Research David Coleman says, BTI is a great cannabis stock to own if you are a value investor that enjoys a healthy dividend. Show Source Texts
You know this stock better as the producer of Marlboro cigarettes, one of the tobacco sectors juggernauts (along with its forays into adult beverages). While it is not exactly a pure play on marijuana, Constellations is having its moment, posting nearly 10% YoY gains with a 1.27 percent dividend yield. Show Source Texts
If you would like to mitigate your risk, you may consider investing in cannabis stocks with “pick-and-spade” companies like Innovative Industries and Scotts Miracle. That alone makes any cannabis investment risky, but there are several other reasons you will want to conduct a solid amount of research before diving headfirst into marijuana stocks. That is why you should always look at the international operations of the company before investing in Canadian cannabis stocks. You should proceed cautiously once you have an understanding of factors that could affect cannabis stocks’ performance — like the legalization of marijuana and licensing requirements. Show Source Texts
Some requirements are intended to help investors make better decisions regarding investments and to minimize the risk of large price fluctuations caused by buying and selling stocks. These instruments allow you to easily invest in cannabis stocks that are already pre-selected by teams of analysts that conducted necessary due diligence and decided to include specific companies into these ETFs. Show Source Texts
Currently, Morningstar – the famous investment research company – officially covers only specific cannabis companies under their qualitative analysis programs, including Aurora Cannabis, Canopy Growth Corp., Cronos Group, Curaleaf Holdings Inc., Green Thumb Industries, and Tilray Inc. As with any new investment, spend hours researching potential pot stocks, including how a company makes money, long-term investment merits, and what makes a stock’s price rise or fall. Value investors believe if a company is cheap relative to its intrinsic worth, in this case, measured by its P/E ratio, then the stock price can go up more quickly than others because prices will return to match the value of the business. Show Source Texts
At that point, most cannabis stocks that you come across would be within the category of smaller-capitalization companies and microcaps (microcaps describe companies that have market caps of less than $250 million). The marijuana industry is made up of companies that are supporting, or engaged in, the research, development, distribution, and sales of marijuana for both medical and recreational purposes. Show Source Texts
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