Worth over $13 billion USD, the global legal cannabis sector is expected to grow 25.5% annually until 2030, according to a 2021 Grand View Research report. Find out how to invest in cannabis stocks and cannabis ETFs in Canada, and check out a list of the best weed stocks.
Cronos Group Inc., a cannabinoid company, engages in the cultivation, production, distribution, and marketing of cannabis products in Canada, Israel, and internationally. It offers dried flowers, pre-rolls, oils, vaporizers, edibles, and tinctures under the Spinach, Lord Jones, Lit, and Peace Naturals brand names.
Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis, hemp, and cannabis-related products in Canada, Germany, and Australia. It operates through four segments: Canada Cannabis, International Markets Cannabis, and Storz & Bickel, and This Works.
Tilray Brands, Inc., a lifestyle consumer products company, engages in the research, cultivation, processing, and distribution of medical cannabis products in Canada, the United States, Europe, the Middle East, Africa, and internationally. The company operates through four segments: Beverage, Cannabis, Distribution, and Wellness.
The Green Organic Dutchman Holdings Ltd., through its subsidiaries, produces and sells organic cannabis in Canada. It offers organic cannabis products, such as cannabis plants, cannabis plant seeds, dried cannabis, fresh cannabis, cannabis oils, cannabis topicals, cannabis extracts, and edible cannabis to retailers or distributors, and federal licensed entities.
Aurora Cannabis Inc., together with its subsidiaries, engages in the production, distribution, and sale of cannabis and cannabis-derivative products in Canada and internationally. It operates through two segments, Canadian Cannabis and Plant Propagation.
Village Farms International, Inc., together with its subsidiaries, produces, markets, and distributes greenhouse grown tomatoes, bell peppers, and cucumbers in North America. It operates in five segments: Cannabis-Canada, Cannabis-U.S., Cannabis " Netherlands, Produce, and Clean Energy.
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Our selection of top picks is based on the same criteria as our annual Stock Trading Platform Awards. This is updated yearly to reflect changes in the market.
"Best for" picks are those we've evaluated to be best for specific product features or categories – you can read our full methodology here. If we show a "Promoted" pick, it's been chosen from among our commercial partners and is based on factors that include special features or offers, and the commission we receive.
This isn't an exhaustive list of all the trading platforms out there. What's best for you depends on your own investing strategy, budget and financial goals.
What you should know before buying the best cannabis stocks
There’s no single winning strategy to finding what experts might call the best weed stocks on the TSX by performance, because the most important considerations are your own goals and circumstances. It’s not personal financial advice, and your personal objectives and financial situation have not been taken into consideration. Do your own research, and speak with an investment professional if in doubt.
Whether you care more about short-term capital gains or long-term dividend growth, it’s important to know whether a stock is performing well, making a profit, paying dividends or going backwards. Always remember that past performance does not guarantee future results. Investments can increase and decrease in value.
We used Finder’s proprietary algorithm to rate the best weed stocks on the TSX based on price, performance, profit, revenue and dividends. Our fundamental analysis filters stocks by taking into account historical prices, dividends, revenue growth, (low) price volatility and profit margins. This might indicate a quality stock, but we do not guarantee the performance or returns of any investment.
To avoid smaller, more speculative stocks, we only include companies with a market cap of more than CAD $200 million. In order to better compare historical data, we filtered out stocks that have been listed for less than 5 years. This methodology no doubt filters out some good stocks, so our decision to include or exclude a stock from our list does not indicate whether it’s a good or bad investment. For more information about our algorithm, check out our stock ranking page.
This list and data was compiled September 14, 2022. The algorithm was last updated 27 January 2021.
Buy the best cannabis stocks through an online broker
To invest in weed stocks, you’ll need a brokerage account. Compare online stock trading platforms below, and click Go to site to get started.
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To make comparing even easier we came up with the Finder Score. Trading costs, account fees and features across 10+ stock trading platforms and apps are all weighted and scaled to produce a score out of 10. The higher the score, the better the platform—it's that simple.
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Find the stocks you want to buy. Search the platform and buy shares of the companies or ETFs you like. It’s that simple.
Invest in cannabis ETFs
Cannabis stocks aren’t the only way to buy into the industry. Exchange traded funds (ETFs) hold stocks in many companies. Sometimes, these funds hold stocks listed in a specific index with the goal of mimicking how that index performs.
Horizons Marijuana Life Sciences Index ETF (TSX: HMMJ)
ETFMG Alternative Harvest (NYSEArca: MJ)
The Cannabis ETF (NYSEArca: THCX)
Cambria Cannabis ETF (BATS: TOKE)
AdvisorShares Pure Cannabis ETF (NYSEArca: YOLO)
Marijuana products
While smoking weed for recreational purposes is perhaps the most well-known use of cannabis, there are many types of businesses that can benefit from this growing industry. Cannabis can be used in a variety of ways including:
Medicinal products. Medicinal cannabis is used for the treatment of cancer pain, epilepsy, palliative care, chemotherapy nausea, neuropathic pain, anorexia and neurological conditions. Cannabidiol, also known as CBD, is a derivative of the marijuana plant that’s become increasingly popular for medical uses.
Science and research. Scientific study of marijuana has accelerated in recent years with the discovery of many other beneficial compounds besides the psychoactive THC.
Recreational use. Marijuana as a recreational drug is legal in Canada but still restricted in some states and the US federal government. However, legalizing is starting to occur in parts of the US.
Food products. Hemp is used as an ingredient in a range of products including cooking oils, snacks, protein powder, cooking flour and more. The sale of food products made from hemp seeds was authorized in the US by the 2018 Farm Bill.
Building materials. Hemp is used in insulation and building construction materials and has several names such as hempcrete, hemp masonry and hemplime.
Clothing. Hemp is broadly recognized as one of the most sustainable materials available in clothing manufacturing.
Beauty products. Hemp is commonly used in health and beauty products like moisturizers, lip balms, makeup and skin oils.
Marijuana vs. hemp
Unlike marijuana, hemp does not have psychoactive properties. While hemp and marijuana come from the same cannabis plant, hemp contains only trace amounts of THC—the psychoactive component that gives the feeling of “getting high.” Typically, hemp is used in food products, building materials and textiles, while marijuana is used for medicinal and recreational purposes.
Bottom line
The legal cannabis industry is growing significantly, and there are a number of ways investors can get on board including weed stocks and ETFs. Keep in mind that past performance does not guarantee a profit. All investments come with risk.
Before buying cannabis stocks, carefully compare stock trading platforms to make sure you find the one that’s right for you.
Frequently asked questions
No. Supreme Cannabis (FIRE) stock was delisted from the TSX after the company was bought by Canopy Growth Corporation (WEED) in 2021. You can buy WEED stock on the Toronto Stock Exchange.
Yes, but not under the name WeedMD. In 2021, WeedMD rebranding to Entourage Health Corp. You can buy Entourage Health stock on the TSX Venture exchange under the ticker symbol "ENTG."
Many cannabis companies do not pay dividends, although Innovative Industrial Properties (NYSE: IIPR) does. You can invest in cannabis-related businesses that pay stock dividends like Virginia-based tobacco company Altria Group (NYSE: MO), which bought a 45% stake in Cronos Group and advocates for cannabis legalization in the US. Another company that pays stock dividends is AbbVie (NYSE: ABBV), maker of the first FDA-approved cannabis drug, Marinol.
Sources
Important information: Powered by Finder.com. This information is general in nature and is no substitute for professional advice. It does not take into account your personal situation. This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for most investors. You do not own or have any interest in the underlying asset. Capital is at risk, including the risk of losing more than the amount originally put in, market volatility and liquidity risks. Past performance is no guarantee of future results. Tax on profits may apply. Consider the Product Disclosure Statement and Target Market Determination for the product on the provider's website. Consider your own circumstances, including whether you can afford to take the high risk of losing your money and possess the relevant experience and knowledge. We recommend that you obtain independent advice from a suitably licensed financial advisor before making any trades.
Mackenzie Domazet is a Senior SEO Strategist at Forbes Advisor and former investments publisher at Finder. She has worked at one of Canada’s largest financial institutions, as well as one of the country's fastest growing fintech companies. She also films videos for the Investment Finder YouTube channel, where she explains financial concepts, reviews trading platforms and more. An active growth investor, Mackenzie has been investing on her own since she was 18. She has a bachelor’s degree in business and is an avid runner and reader.
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Emma Balmforth is a producer at Finder. She is passionate about helping people make financial decisions that will benefit them now and in the future. She has written for a variety of publications including World Nomads, Trek Effect and Uncharted. Emma has a degree in Business and Psychology from the University of Waterloo. She enjoys backpacking, reading and taking long hikes and road trips with her adventurous dog.
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