Best Cannabis Stocks For Long Term Investors
Are you looking for the best marijuana stocks to invest in for 2022? In 2021 one area of the cannabis sector performed much better than the rest of the top cannabis stocks. In general cannabis REITs held onto their value last year while most of the other pot stocks declined throughout the year. Specifically, marijuana REITs have become one of the best ways to invest for the long term in the cannabis sector.
One reason for this is because they are some of the few marijuana stocks that provide a dividend to shareholders. Another reason is that many marijuana REITs currently have long-term agreements with leading cannabis companies across the US. With many analysts predicting a volatile year for the market these cannabis stocks could offer cannabis investors a more stable area to invest in.
After a recent price drop at the beginning of this year pot stocks like Innovative Industrial Properties, Inc. (NYSE: IIPR) are on the watchlist for 2022. Down 15.44% in the last month IIPR stock has a 360.21% 3-year total return. Because it seems top cannabis stocks have now priced in the delays for federal marijuana legalization, they could be ready for future potential. Making a watchlist of these marijuana stocks and following how these stocks perform in the market can allow you to establish the best returns on your investments.
Researching Companies And Investing In The Best Pot Stocks In 2022
Before making any investments it’s always important to do your own due diligence on a company. Researching a company’s earnings and press releases is a good way to find the best businesses to invest in. In addition, studying how a stock moves in the market can help you establish the best entry point for your position. Some investors when taking a long-term position will tier their entries taking advantage of any lower price points to add to existing positions.
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Although it seems the market has now factored in the possibility of not achieving federal cannabis reform it remains a strong possibility. In addition, the cannabis industry has been growing rapidly on the state level as new states establish medical and recreational markets. As we see some upside for many top cannabis stocks let’s look at 2 of the best marijuana stocks to watch for long-term investing.
Top Marijuana Stocks For Your 2022 Long Term Portfolio
- Power REIT (NYSE: PW)
- AFC Gamma, Inc. (NASDAQ: AFCG)
Power REIT (PW)
Power REIT is a real estate investment trust that focuses on long-term real estate with high risk-adjusted returns. In general, the company holds a growing portfolio of Controlled Environment Agriculture (CEA) buildings, including greenhouses and associated processing facilities. Currently, the properties are leased to tenants who are authorized to grow medicinal cannabis on the premises. The assets are slated for growth, and Power REIT has the ability to pay the property enhancements. Furthermore, Power REIT’s greenhouse facilities provide a sustainable growing alternative.
Power REIT increased its reach in Colorado by purchasing a 10-acre property that includes a 12,000-square-foot greenhouse. As a result, the business now has investment assets totaling over 83 acres and 383,328 square feet of CEA facilities throughout Southern Colorado. The corporation paid $18.4 million in September for a 556,146 square foot cannabis greenhouse growing and processing facility. This will be Michigan’s and one of the United States’ largest cannabis production facilities. Power REIT owns 21 CEA buildings totaling more than 1 million square feet as of November. The trust paid $0.484375 per share in dividends in the third quarter, for a total of $1.9375 per total share.
PW Stock Performance
PW stock closed at $75.52 on January 11, 2021, up 6.68% for the trading day. Currently PW stock has a 52-week price range of $26.00-$76.40and is up 88.71% in the last six months. According to analysts at Tip Ranks, PW stock has a 12-month average price target of $86.00 per share. In this case, this would represent an upside of 13.88% from its last trading price of $75.52. PW stock may be one of the best cannabis stocks to watch in 2022 for your long-term portfolio.
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AFC Gamma, Inc.
AFC Gamma, Inc. is a well-known cannabis company with a healthy cash flow and activities. The 2020-founded company focuses on real estate security and other collateral, as well as sites in states with strong supply/demand fundamentals and good legislative conditions. AFCG specializes in first-lien loans, mortgage loans, construction loans, bridge financings, and other creative and unusual financing alternatives. AFC Gamma’s latest initiatives are centered on the cannabis industry’s increasing expansion. With Verano Holdings Corp., the company agreed to a $250 million credit upsize at 8.50 percent APR and a $100 million option in October (OTC: VRNOF).
AFC Gamma reported net earnings of $7.9 million, or $0.48 per common share, for the third quarter of 2021 in November. According to the company, $119.2 million in new commitments were closed, and $89.3 million in new and existing obligations were financed. AFC paid a $0.43 per share dividend in October, up 13.2 percent from the previous quarter. The corporation paid a $0.50 dividend per share for the fourth quarter in December. This is up from $0.43 in the third quarter of 2021 by 16 percent. Acreage Holdings, Inc. (OTC: ACRHF) also received a $150 million loan facility from AFC Gamma to help expedite its expansion plans. The business announced the pricing of its public offering of 3 million common equity shares at $20.50 per share on January 5th. The estimated gross proceeds are $61.5 million before deducting underwriting discounts and commissions.
AFCG Stock Performance
AFCG stock ended at $20.18 on January 11th, down 4.45 % in the previous month. The stock is down 5.74 % in the previous six months, with a price range of $18.91 to $25.50. CNN Business experts estimate a 12-month average price of $28.38 per share for AFCG shares. This forecast indicates a 40.47 percent gain over the stock’s most recent trading price of $20.18.
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