Cannabis and Hemp Sector Ideas

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>>> Innovative Industrial is one of the few REITs designed for the needs of the cannabis industry. It owns industrial and greenhouse properties tailored for marijuana production.


https://www.fool.com/investing/2020/11/22/3-unknown-but-amazing-dividend-stocks/


Due to Schedule I restrictions, banks cannot loan money to cannabis producers. Hence, Innovative Industrial helps to fund this capital-starved industry by buying property from growers and then leasing it back, giving cannabis companies the financing to move forward with production.

This model has led to the stock price more than doubling since the year began. Also, whether true or not, some perceive a Biden administration as more friendly to the cannabis industry. Moreover, Arizona, Montana, New Jersey, and South Dakota legalized weed for recreational use in the recent November elections. Such trends have worked in the company's favor.

Additionally, Innovative Industrial's time under the grow lights yielded massive growth even before these measures passed. In the most recent quarter, the company grew revenue by 197% from year-ago levels. This led to adjusted funds from operations income tripling over the same period. Also, its annual dividend of $4.68 per share yields around 3%. The company has hiked the payout twice this year.

Moreover, despite this performance, the stock trades at a price-to-FFO ratio of about 34. That's reasonable for a company with such impressive growth today and exciting prospects tomorrow.

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