Breaking News
Investing Pro 0
Black Friday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Top Picks 2019- Innovative Industrial Properties IIPR

Stock Markets Jan 11, 2019 07:15AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
WMB
+0.21%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

The past year saw the legal cannabis market explode. Canadian cannabis stocks were the hot investment of 2018. And they went on a ridiculous ride, observes growth stock expert Jason Williams (NYSE:WMB), editor of The Wealth Advisory.

Many went from their initial price offerings (IPOs) to $20 billion companies within a few weeks, and back down to the ground over the following months. So, it might seem odd that my “conservative” pick for 2019 is in the same industry. But it’ll all make sense when you hear what this company is doing and where.

Canadian cannabis is last year’s news. The U.S. is where the real money will be made in the future. Our industry is expected to reach $10 billion this year. And according to Marijuana Business Daily, it could get as high as $22 billion by 2022.

And it’s still illegal in the U.S. But over 30 states now allow medical marijuana use and seven states plus Washington, D.C., allow recreational use. And that will likely increase in 2019.

But there will be a lot of volatility out there. And there will be rallies fueled by speculation just like there were with the Canadian companies. So, you need an investment that’s immune to those kinds of wild swings but will still profit every time another state votes “yes.”

Innovative Industrial Properties (IIPR) is that kind of investment. It’s a real estate investment trust that owns marijuana cultivation and processing facilities and rents them to cannabis operations. The leases are triple net, which means that IIPR’s tenants pay all the bills, all the taxes, make the repairs, and pay rent to Innovative Industrial. That’s not a bad deal.

The stock is up by more than 100% since last year. It’s one of the best-performing cannabis stocks out there, now that the high-flying growers are coming back to earth. Plus, because it’s a REIT, it has to pay at least 90% of its pretax profits to investors. It’s like you’re getting paid every time someone gets high.

Subscribe to The Wealth Advisory here…

Top Picks 2019- Innovative Industrial Properties IIPR
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email