In a surprising twist in the investment world, a dividend-paying cannabis stock has soared past the one-year returns of tech behemoths like Tesla, Citigroup, Apple, and Zillow. This marks a significant shift in investor sentiment as the cannabis industry begins to take its place in the portfolios of savvy investors.
A Budding Success Story
Innovative Industrial Properties (IIP), a real estate investment trust focusing on the cannabis industry, has reported a staggering 36.26% return over the past year. This growth is attributed to its unique business model of leasing properties to licensed cannabis operators under long-term agreements. IIP’s success is a beacon for the industry, showcasing the potential for high returns amidst a challenging economic landscape.
The company’s approach has not only yielded impressive financial results but also provided a stable foundation for the growth of the cannabis sector. With a portfolio of 108 properties across 19 states, IIP’s reach is extensive, and its impact on the market is undeniable.
Comparing Titans
The performance of IIP stands in stark contrast to some of the most popular stocks on the market. Tesla’s shares have seen a decline of 8.05%, while tech giant Apple has had a modest increase of 4.8%. Even Citigroup’s notable 27.5% return pales in comparison to IIP’s robust growth.
This divergence highlights the changing tides in investment trends, with traditional tech stocks no longer being the sole focus of growth-oriented portfolios. The rise of IIP reflects a broader acceptance of cannabis-related businesses in the mainstream financial world.
Dividends and Growth: A Rare Combination
What sets IIP apart is its ability to provide consistent dividends to its shareholders, a rarity in the growth-focused cannabis industry. Since the second quarter of 2017, IIP has been rewarding its investors with consecutive quarterly dividends. This commitment to shareholder returns, coupled with substantial capital appreciation, positions IIP as a compelling option for those looking to diversify their investments.
The company’s performance is a testament to the viability of the cannabis industry as a legitimate and profitable sector. It also serves as an example of how innovative business models can thrive, even in traditionally conservative markets.
