Billionaire Boys Club Member Forum (BBCMF)

[mick]

Innovative Industrial Properties (NYSE: IIPR) shareholders shouldn't have many complaints about 2019. The cannabis-focused real estate investment trust (REIT) stock has soared more than 65% with only two days left in the year.

My view is that IIP should be able to repeat its formula for success in 2020 quite easily. The company currently owns 46 properties in 14 states that it leases to customers. It has plenty of financial flexibility to add more cannabis properties in the new year that will drive even further growth.

Cannabis markets are still in their infancy in several of the states where IIP operates. And with 33 states with legal medical cannabis markets and several likely to vote on legalization in 2020, the company has lots of growth opportunities.

While IIP is poised to deliver strong revenue and earnings growth next year, there's also another reason to like this stock: Its dividend. The company recently declared its fourth-quarter dividend and is paying out 28% more than it did in the previous quarter. IIP's dividend yield now stands at a mouth-watering 5.3%.