From The Motley Fool · Keith Speights · · 1m
Hands-Down Best Cannabis Stock for Dividend Investors
Innovative Industrial Properties preferred stock offers 9% yield with cannabis industry exposure.
In brief
Innovative Industrial Properties preferred stock offers 9% yield with cannabis industry exposure. Innovative Industrial Properties 9.00% Series A Cumulative Redeemable Preferred Stock provides 9.3% yield and priority over common shareholders in cannabis industry. Originally reported by The Motley Fool.
Why cannabis stocks are risky for income investors
Most cannabis stocks don't pay dividends and operate in a highly volatile industry.
The preferred stock solution
Innovative Industrial Properties 9.00% Series A Cumulative Redeemable Preferred Stock offers 9.3% yield.
Why preferred stock is safer than common stock
Preferred dividends are contractual and must be paid before common dividends.
The risks of cannabis industry exposure
Cannabis operators may miss payments to Innovative Industrial Properties.
Tenant concentration risk
Only five tenants pay half of Innovative Industrial Properties' total rental revenue.
Who this stock is for
Aggressive income investors seeking cannabis industry exposure without company risk.
Here's the gist
Innovative Industrial Properties 9.00% Series A Cumulative Redeemable Preferred Stock provides 9.3% yield and priority over common shareholders in cannabis industry.
