Best Cannabis Stocks For Long Term Investing
With top marijuana stocks trading near their 2021 lows, is now a good time to find pot stocks for your watchlist? In the US the cannabis sector began the year with a rally that reached its high in February. After that time cannabis investors have seen declines in pot stocks for the remainder of the year. But there is one sector that has held onto value better than the rest of marijuana stocks.
In 2021 marijuana REITs managed to see some upward momentum in the market unlike the rest of the cannabis sector. Currently, cannabis REITs have continued to help leading cannabis companies expand across the US by providing them with long-term triple net leases and capital for upgrades at their cultivation and processing facilities.
For the past few years, marijuana real estate companies have become a favorite among institutional and hedge fund investors. This is partly because many cannabis REITs offer a substantial dividend to shareholders. In the US the cannabis industry is growing rapidly across the country as new states establish cannabis markets. This is increasing the demand for cannabis in the US which will require more facilities to cultivate and supply the growing market.
Finding The Best Pot Stocks To Buy And Making The Best Entry
Before investing in any marijuana stocks, it’s always important to do your own research on a company. Looking into a company’s earnings and following how a stock performs in the market can help you establish the best returns on your investments. One-way investors keep track of possible investments is by making a watchlist of the stocks they are interested in. Let’s take a closer look at 2 top marijuana stocks to watch for your long-term portfolio.
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Top Marijuana Stocks With A Dividend For Your 2022 Watchlist
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- AFC Gamma, Inc. (NASDAQ: AFCG)
Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc., a real estate investment trust focused on the US-regulated cannabis sector, is one of the major marijuana REITs. The company currently has a total of 7.5 million rentable square feet and 2.7 million square feet under construction. These properties are primarily 100% leased, with a weighted average remaining lease period of around 16.7 years. The corporation currently owns 76 properties in 19 states. IIP had invested a total of $1.5 billion as of November 3rd and had pledged another $391.7 million to reimburse renters for property renovations. Furthermore, the company revealed that it has purchased a site in California and is in the process of signing a long-term lease with Gold Flora. In addition, the firm increased its long-term real estate collaboration with New York-based Goodness Growth Holdings, Inc. (OTC: GDNSF).
IIP released third-quarter 2021 results in November, with overall total revenues of $53.9 million for the quarter. This is a % rise from the previous year. In Q3, the company earned roughly $29.8 million in net income to common stockholders or about $1.20 per diluted share. In October, IIP issued a quarterly dividend of $1.50 per share, a 28 percent increase year over year. The corporation now has roughly $127.3 million in cash on hand and $554.4 million in short-term investments. IIP issued a $1.50 per share dividend for the fourth quarter of 2021 on December 15th. This works out to a $6 yearly dividend per common share.
IIPR Stock Performance
On December 16th, IIPR stock was trading at $237.89, up 3.96 percent over the previous five trading days. The stock is currently trading in a 52-week price range of $160.91-$264.27, with a year-to-date gain of 33.86 percent. The stock of IIPR has a 12-month median price objective of $290.00 per share, according to CNN Business experts. In this example, this would be a 21.74 percent increase over the previous trade price.
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AFC Gamma, Inc.
AFC Gamma, Inc. is a prominent cannabis company with outstanding operations and cash-flow potential. The organization, which was founded in 2020, focuses on real estate security and other collateral, as well as sites in states with good supply/demand fundamentals and legislative conditions. AFCG primarily offers first-lien loans, mortgage loans, construction loans, and bridge financings as well as other innovative and customized financing solutions. In general, AFC Gamma’s concepts are now centered on the cannabis industry’s exponential expansion. With Verano Holdings Corp., the company agreed to a credit upsize of $250 million at 8.50 percent interest and a $100 million option in October (OTC: VRNOF).
AFC Gamma reported net profits of $7.9 million in the third quarter of 2021, or $0.48 per average share, in November. The company closed $119.2 million in new commitments and funded $89.3 million in new and existing commitments, according to the company. AFC paid a $0.43 per share dividend in October, up 13.2 percent from the previous quarter. The corporation issued a $0.50 dividend per share for the fourth quarter on December 15th. This represents a 16 percent increase from $0.43 in Q3 2021.
AFCG Stock Performance
On December 16th, AFCG stock was trading at $20.75, down 17.85 percent over the previous six months. The stock has a price range of $19.75 to $25.05 and is down 3.27 percent in the last five days. AFCG stock has a 12-month average price forecast of $26.67 per share, according to Tip Ranks analysts. This projection represents a 28.65% increase over the stock’s last trade price of $20.75.
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