Best Marijuana Stocks For Your Long-Term Portfolio
Do you intend to invest for the long term in the top marijuana stocks? At the present time, many investors are starting to believe the market may have bottomed out in June. Finding long-term investments with consistency may be challenging given the market volatility associated with the best cannabis stocks to watch right now. Over the long run, cannabis REITs have been among the greatest performers in the marijuana stock market. Some may be getting ready for another run given their stellar investor returns over the previous five years.
Cannabis REITs have ranked among the best-performing marijuana equities in recent years. One reason for this is the fact that many marijuana REITs offer shareholders dividends, which is still unusual for cannabis companies. As a result, these top marijuana stocks have garnered interest from several institutional investors and private equity organizations.
Additionally, it is expected that over the next five years, the cannabis industry would more than double in size, supporting the continuous expansion of marijuana REITs. Let’s look at two of the top cannabis stocks for your long-term portfolio right now if you’re an investor seeking long-term holdings in the industry.
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Top Marijuana Stocks To Watch For Long-Term Investing In 2022
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- AFC Gamma, Inc. (NASDAQ: AFCG)
Innovative Industrial Properties, Inc.
A cannabis REIT with a focus on the US legal cannabis market is Innovative Industrial Properties, Inc. 7.7 million square feet of rentable space are now available to the corporation, and 2.5 million more are anticipated soon. Most of these structures are fully leased, with an average lease term of 16 years. The company now has 110 properties distributed throughout 19 states. IIP has spent $2.1 billion on property renovations as of April, with an extra $209.6 million in projected rent payments. Also, IIP anticipates that as it continues to purchase properties, notably in Pennsylvania and Massachusetts, its lease portfolio will expand considerably in 2022.
The company reported total revenues of almost $70.5 million for the second quarter of 2022 on August 3rd, a 44% increase over the same period the previous year. In addition, IIP paid a quarterly dividend of $1.75 per common share, or an annualized dividend of $7.00 per share, on July 15, 2022, to shareholders of record as of June 30, 2022. This payment represented a 25% increase over the preceding year’s second quarter 2021 payout. At a site in Pennsylvania, the business increased its real estate partnership with Green Thumb Industries. IIP has invested a total of $94.6 million in the 300,000-square-foot building.
On August 10th, IIPR stock closed at $95.48 and is down 17.72% in the past month. The stock is currently trading in a 52-week price range of $88.38-$288.02, down 64.11% year to date. IIPR stock has a 12-month median price target of $142.50 per share, according to CNN Business analysts. In this forecast, this would be a 50.97% increase over the previous trade price of $95.48.
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AFC Gamma, Inc.
AFC Gamma, Inc. is a well-known cannabis ancillary company with a strong cash flow and efficient business operations. The business, established in 2020, concentrates on supply and demand fundamentals, and real estate security, and other collateral. Presently, AFCG includes first-lien loans, mortgage loans, construction loans, bridge financings, and other unorthodox financing solutions. AFC Gamma’s most recent business initiatives have centered on the cannabis market, which is expanding quickly. The company approved a $250 million credit upsize with Verano Holdings Corp. (OTC: VRNOF) as well as a $100 million option.
AFC reported second quarter 2022 results on August 9th, with a net income of $11.4 million, or $0.58 per basic weighted average share. A further $13.6 million in distributable earnings, or $0.69 per basic weighted average share of common stock, were recorded by the corporation in the second quarter of 2022. AFC also increased its dividend payment by 47% from Q2 2021 to Q2 2022, paying $0.56 per common share on July 15, 2022. As of August 1, 2022, the company completed $154.7 million in new commitments. Additionally, AFC funded $135.5 million in new and existing obligations, including around $32.0 million that was refinanced from current borrowers.
On August 10th, AFCG shares closed at $18.10, a 16.25 percent increase over the previous month. At the present time, the stock, which has a price range of $14.90 to $25.50, is down 20.47% year to date. In this case, analysts at CNN Business predict that the 12-month average price for AFCG shares will be $22. In comparison to the stock’s most recent trading price of $18.10, this prediction shows a gain of 21.68 percent.
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Top Cannabis Investments For August 2022
For new investors searching for long-term investments to enter the cannabis industry, cannabis REITs might be a good option. You should always conduct your own research before making an investment in a company. To figure out which companies are the strongest investments, you can examine their financial statements and press releases. Presently, these marijuana stocks could be the ones to watch now in August if you want to make long-term investments.