Best Marijuana Stocks In 2021
Are you looking for the best marijuana stocks to buy right now? In September the cannabis sector took a turn for the worse last week giving up any upside established in the month. Some areas of the cannabis sector have managed to hold on to some of the value-added in 2021. For the most part, ancillary cannabis stocks have performed well this year. Ancillary companies are those companies that support the cannabis industry without touching the actual cannabis plant.
In general, more investors are turning to these pot stocks for long-term holds in the cannabis sector. Positioned to grow alongside the cannabis market these companies have shown strong revenue growth for the past couple of years. Some ancillary pot stocks also provide dividends to shareholders as an incentive for the long-term investor.
In general, dividends are hard to come by with cannabis stocks there is only a hand full of options in the sector. In the next five years, the cannabis industry is expected to more than double in size giving these companies substantial room to grow. With the cannabis sector currently pulling back, it could be time to make a list of cannabis stocks to watch. For hedge funds and money managers, these stocks have become some of their favorites when it comes to the cannabis sector.
Long Term Investing In The Cannabis Industry
Before investing it’s important for traders to do their research on a company before starting a position. Studying how a stock performs in the market and looking into its financials are good ways to find the best investments. When investing for the long term it’s important to watch for the best entry point for the initial investment. This could add significant returns to your investments.
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Right now, the cannabis industry is growing rapidly across the US without the ability to regularly bank in the US. Because of this cannabis REITs have played an important part in providing leases for cultivation and processing facilities across America. With long-term leases in place with some of the largest cannabis companies in the US, they continue to grow as new markets open. Let’s look at 2 top marijuana stocks for your long-term portfolio in 2021.
Top Marijuana Stocks To Watch For Long Term Investing
Innovative Industrial Properties, Inc.
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 6.8 million rentable square feet and 2.4 million square feet under development. As it stands, these properties are 100% leased with a weighted average remaining lease term of about 16.7 years. In detail, the company owns 74 properties across 18 states. IIP continues to close acquisitions including properties in Pennsylvania and Massachusetts expanding its lease portfolio significantly in 2021. Immediately, after the purchase, IIP will enter a long-term triple net lease with the cannabis company using the property. The company invested an estimated $1.3 billion across its portfolio and has committed another $385.3 million for the completion of construction and tenant improvements at IIP properties.
IIP reported its second-quarter 2021 financials with performance-driven growth of 101% in total revenue year over year. Specifically, the company generated total revenue of $48.9 million. IIP paid its second-quarter 2021 dividend of $1.40 per share on July 15th a 32% increase from the year prior. Notably, this represents an increase of 6% over the first quarter dividend. IIP has 21% debt to total gross assets with about $2.1 billion in total gross assets. As a result, the company has generated total revenues of about $91.8 million for the first six months of 2021.
IIPR Stock Performance
IIPR stock closed on September 14th at $228.29 down 9.44% in the last five trading days. The stock has a 52-week price range of $112.25-$253.61 reaching this new high the first week in September. According to analysts at CNN Business IIPR stock has a 12-month median price target of $260.00 per share. In essence, this would represent an upside of 14% from its last trading price of $228.28.
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Power REIT (PW)
Next on the list is, Power REIT (PW) a specialized real-estate investment trust focused on sustainable real estate with attractive risk-adjusted returns. At the present time, Power REIT owns a growing portfolio of Controlled Environment Agriculture or CEA properties in the form of greenhouse and associated processing space. Primarily, 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. Power REIT’s greenhouse properties are an environmentally friendly cultivation solution.
Recently, Power REIT expanded its Colorado footprint by acquiring a 10-acre property that includes the construction of a 12,000 square foot greenhouse space. In general, this gives the company investment properties across Southern Colorado with over 83 acres and 383,328 square feet of CEA facilities. On September 9th the company acquired a 556,146 square foot cannabis greenhouse cultivation and processing facility for $18.4 million. This facility will the largest cannabis cultivation facility in Michigan and one of the largest in the US. In Power REITs latest results net income per share increase 148% and Core FFO per common share increased 102%. For Q2 the company paid a dividend of $0.4834 per share each quarter which would be a total of $1.9375. The dividend is payable on September 15th to stockholders of record as of August 15, 2021.
PW Stock Performance
PW stock closed on September 14th at $44.00 up 16.74% in the past six months. The stock has a 52-week price range of $16.80-$51.95 and is up 64.73% year to date. According to analysts at Market Beat PW stock has a consensus price target of $63.00 per share. In this case, this would represent an upside of 43.2% from its last trading price. For investors cannabis REITs with a dividend could be one way to invest in top marijuana stocks for the long term.
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