Real estate and cannabis will be two of the hottest industries on investors’ minds in 2024.
Real estate stands out as a solid investment due to its historical resilience, potential for long-term appreciation, and the ability to generate consistent rental income. Cannabis, on the other hand, is more exciting, offering the opportunity to invest in a rapidly expanding legal market with increasing social acceptance and the potential for significant growth in various sectors, including medicinal and recreational use.
While some stocks offer you the opportunity to invest in multiple industries, very few offer the opportunity to invest in both real estate and cannabis. One of the most popular stocks that offers just this is Innovative Industrial Properties Inc.(NYSE:IIPR), a real estate investment trust (REIT) that acquires, owns, and manages specialized properties leased to cannabis companies. Its portfolio currently consists of 108 properties across 19 U.S. states, including both industrial and retail properties.
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Innovative Industrial Properties counts some of the largest and most popular cannabis companies as its tenants, including Ascend Wellness Holdings Inc. (OTCQX:AAWH), The Cannabist Company (OTCQX:CBSTF), Cresco Labs Inc. (OTCQX:CRLBF), Curaleaf Holdings Inc. (OTCQX:CURLF), Green Thumb Industries Inc. (OTCQX:GTBIF), and Trulieve Cannabis Corp. (OTCQX:TCNNF). In total, it has 29 tenants, with no single tenant representing more than 15% of its invested capital.
The risk of investing in the landlord of cannabis operators is significantly lower, while the reward could be more limited. However, Innovative Industrial Properties also comes with a great dividend. It currently pays a quarterly dividend of $1.82 per share, equating to $7.28 per share annually, which gives it a juicy yield of about 7.6% today.
Furthermore, Innovative Industrial Properties has raised its annual dividend each year since its initial public offering in 2016, making 2023 the 7th consecutive year in which it raised its annual dividend, and it’s on pace for 2024 to mark the 8th consecutive year.
For those interested in gaining exposure to both real estate and cannabis, Innovative Industrial Properties could be exactly what you’re looking for.
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This article Gain Exposure to Real Estate and Cannabis With This One Stock That Yields 7.6% originally appeared on Benzinga.com
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