Are These The Best Ways To Invest In Cannabis Stocks In 2021?
Are you looking for the best ways to invest in top marijuana stocks for gains in August? As Robinhood IPOs the cannabis sector is showing some upside in the market. For the past several months the cannabis sector has been declining in the market. But with earnings for most top marijuana stocks to watch being released for the next few weeks we may begin to see some upside in trading. Because the cannabis sector has continued to show volatility many investors are looking for cannabis stocks that display more stability in the market.
One area that continues to deliver returns for investors is ancillary marijuana stocks. This area of the cannabis sector has also displayed more stability than vertically integrated pot stocks. Top hedge funds and money managers are focusing on these types of investments for the long term. Some ancillary cannabis stocks also provide a dividend as an incentive for l the long-term investor. Many top ancillary marijuana stocks available on Robinhood in 2021 could produce significant gains for shareholders. Although rare cannabis REITs have performed well for investors.
Cannabis REITs For Robinhood Investors
REITs or real estate investment trusts are companies that own or finance income-producing real estate across a range of property sectors. Some REITs own many types of commercial properties. As for cannabis REITs, these companies focus specifically on cultivation and processing facilities for licensed cannabis companies. Since 2020 the top REITs in cannabis have seen significant gains in the market.
Because Cannabis is still federally illegal top vertically integrated cannabis companies are not able to get capital from banks and rely on REITs for funding and buildouts at facilities. As the marijuana industry grows leading cannabis companies will need more facilities to service the demand for cannabis. At the present time, these top cannabis REITs have been providing properties and capital to the top licensed marijuana companies. With this in mind, let's take a closer look at 2 top cannabis stocks that could be some of the best pot stocks for long-term investing.
Top Marijuana Stocks To Watch For August 2021
Innovative Industrial Properties, Inc.
For dividend growth investors, Innovative Industrial Properties, Inc. is a real estate investment trust with a focus on the US-licensed cannabis market. At the present time, the company has a total of approximately 6.6 million rentable square feet. These properties are 100% leased with a weighted average remaining lease term of about 16.7 years. As of July, the company owns 72 properties across 19 states nationwide. IIP continues to close acquisitions including properties in Pennsylvania and Massachusetts expanding its lease portfolio significantly in 2021. After the purchase, IIP will enter a long-term triple net lease with the cannabis company using the property.
In its Q1 2021 financials, IIP saw total revenue of an estimated $42.9 million an increase of 103% from the prior year. IIP declared its second-quarter 2021 dividend of $1.40 per share. This represents an increase of 6% over the first quarter dividend. Due to this dividend IIPR stock has become a favorite with hedge funds and money managers for long-term investing in cannabis stocks. This dividend equates to an annualized of $5.60 per share and is the 11th dividend increase since its inception in 2014. The company is expecting to announce its second-quarter financials on August 4th after the market closes.
IIPR Stock Performance
IIPR stock is trading at $213.24 on July 29th 16.77% year to date. This top pot stock has gained 633.49% in its 3-year year total returns. According to analysts at CNN Business IIPR stock has a 12-month average forecast of $220.00 per share. This would represent an upside of 3.17% from its current trading price of $213.24. As cannabis companies continue to grow IIPR stock could be one of the best ways to invest in marijuana stocks for the long-term investing in the cannabis market.
Power REIT (PW)
Power REIT (PW) is a specialized real-estate investment trust (REIT) focused on sustainable real estate with attractive risk-adjusted returns. Currently, Power REIT owns a growing portfolio of Controlled Environment Agriculture or CEA properties in the form of greenhouse and associated processing space. The properties are leased to tenants that are licensed to produce medical cannabis at the facilities. The properties are targeting expansion and Power REIT has the option to fund the capital costs of property upgrades.
Most important, Power REIT’s greenhouse properties are an environmentally friendly cultivation solution. In June Power REIT expanded its Colorado footprint by acquiring a 10-acre property that includes the construction of a 12,000 square foot greenhouse space. This gives the company investment properties across Southern Colorado with over 83 acres and 383,328 square feet of CEA facilities. Power REIT is expecting to release financials on August 4th.
PW Stock Performance
At the present time, PW stock is trading at $36.09 on July 29th up 39.95% year to date. The stock has a 52-week range of $16.80-$51.95 and has gained 510.75% in its 1-year performance. According to analysts at Tip Ranks, PW stock has an average 12-month price target of $63.00 per share. This would represent an increase of 74.56% from its last trading price of $36.09. With this in mind, PW stock could be a top marijuana stock to watch on Robinhood going into cannabis earnings season.
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