10 Best Marijuana Stocks to Buy Now

Investors in marijuana stocks have been put through the wringer for years. But with U.S. cannabis sales on the rise, these 10 picks could finally have their day in the sun.

Cannabis plants pictured against a partly cloudy sky
(Image credit: Getty Images)

Cannabis investors have been waiting for a surge in marijuana stocks since the end of 2017. So far, they have gotten nothing but false starts.

But investors that hold the industry's best stocks and the best exchange-traded funds (ETFs) – and perhaps a bit more patience – should be best-positioned for marijuana's renaissance.

The Prime Alternative Harvest Index, which tracks the performance of some of the cannabis industry's most prominent companies, is working on its fifth consecutive calendar year with double-digit negative returns. Perhaps worse: A $10,000 investment in the index at its inception on Dec. 18, 2017, would today be worth around $2,000.

Amazingly, while marijuana stocks haven't delivered the long-term returns investors have yearned for over the past five years, the cannabis industry in the U.S. is extremely healthy – and that's despite a continued delay in federal legalization. You can thank a growing number of forward-thinking states such as New Jersey, which legalized recreational-use marijuana on April 21.

In 2022, estimates put U.S. legal cannabis sales at $33 billion – up 32% from 2021 – and at $53 billion by 2026. The economic impact is expected to be even more significant.

"While federal legalization flounders in Washington, D.C., the American cannabis industry's economic impact could near $100 billion by end of 2022 and nearly $158 billion by 2026," Jenel Stelton-Holtmeier, editor of MJBiz Factbook, tells Fortune. "This means that for every $1 consumers and patients spend at adult-use stores and dispensaries, an additional $1.80 will be injected into the economy, much of it on a local level."

The long-term prognosis for the cannabis industry is excellent. Ultimately, the following 10 picks look like the best marijuana stocks (and funds) to benefit from this ongoing growth and maturation.

Data is as of Sept. 21. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price.

Will Ashworth
Contributing Writer, Kiplinger.com

Will has written professionally for investment and finance publications in both the U.S. and Canada since 2004. A native of Toronto, Canada, his sole objective is to help people become better and more informed investors. Fascinated by how companies make money, he's a keen student of business history. Married and now living in Halifax, Nova Scotia, he's also got an interest in equity and debt crowdfunding.