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With the growing acceptance of cannabis among American consumers and their elected representatives, this edgy asset class offers your portfolio an excellent source of growth.
To help you choose the best cannabis investments, we take a closer look at 14 stocks and funds, as well as a few less dank offerings it’s perhaps better to avoid.
As always, you should ensure any potential investment choice aligns with your personal goals and risk tolerance.
No dividends to report yet, but investors willing to take on the risk of this up-and-coming stock when it hit a low of $1.88 per share in November 2020 would now hold shares worth over $12 each.
Investors might find a bargain buy here as shares currently trade near a 52-week low in the $12 per share range, down from the April 5, 2021, high of over $28 per share after news came out that one of its leading offerings showed poorer results in testing than expected.
Either way, Cronos displays controlled growth, but investors need to have a sense of adventure, with its 52-week price fluctuation between $4.62 and $15.83 per share.
If you’re looking to dip a toe into cannabis, this ETF can help you get all the benefits of an actively managed mutual fund with the real-time liquidity of an ETF.
With an at-present highly accessible cost-per-share under $30, investors wanting to try the cannabis industry on for size can do so at a low price of entry.
• Global X Cannabis ETF , this ETF also posts respectable returns in excess of 47% YTD early May 2021.
Analysts have noticed and the stock comes complete with several Buy and Strong Buy ratings and a dividend yield that only stocks in this sector can bear: 7.1%.
Again, likely not a consideration for ESG-minded investors but with a P/E ratio over 23, investors could see modest growth ahead with this company with a long history.
. Where does a company best known for plant fertilizers come into the cannabis mix? If you can make backyard plants grow, odds are you can make cannabis grow.
With a dividend yield of 2.93%, it’s attractive from an income perspective and a P/E ratio of 54 says that investors could enjoy dividends in anticipation of growth down the line.
. While sales are up 23% quarter over quarter, Canopy’s caught the ire of industry analysts and has recently suffered a slew of downgrades and declining returns.
While making several other top pot stock lists, Tilray has recently been downgraded by several analysts and returns have been flat.
Going public has never been easier now that SPACs—special purpose acquisition companies—are on the scene.
Returns in 2021 have been mostly flat and the company is in the process of a merger with Weedmaps, a leading cannabis industry tech player.
Depending on your personal preference and portfolio needs, there are a wide variety of ways to test cannabis-related holdings in your portfolio.
Before joining Forbes Advisor, John was a senior writer at Acorns and editor at market research group Corporate Insight.