Best Marijuana Stocks For Your Long-Term Portfolio
Do you plan to invest for the long term in the top marijuana stocks? Finding long-term investments with consistency may be challenging given the market volatility associated with the best cannabis stocks to follow right now. Over the long term, cannabis REITs have been among the greatest performers on the marijuana stock market. Some may be getting ready for another run given their exceptional investor returns over the previous five years.
Cannabis REITs have been among the best-performing marijuana companies in recent years. This is mostly because marijuana REITs frequently distribute dividends to shareholders, which is still unusual for cannabis businesses. These top marijuana stocks have attracted interest from a large number of institutional investors and private equity companies. Additionally, it is predicted that over the next five years, the cannabis market would more than double in size, supporting the steady expansion of marijuana REITs.
According to the most recent estimates given by the industry analytics firm New Frontier Data, the marijuana business in the US is predicted to generate $25 billion in sales by 2025. Let’s take a look at two of the top cannabis stocks for your long-term portfolio right now if you’re an investor seeking long-term holdings in the industry.
[Read More] 2 Marijuana Stocks To Watch As Momentum Continues To Build
Top Marijuana REITs For Your November Watchlist
- AFC Gamma, Inc. (NASDAQ: AFCG)
- NewLake Capital Partners, Inc. (OTC: NLCP)
AFC Gamma, Inc.
AFC Gamma, Inc. is a well-known cannabis ancillary business with a strong cash flow and good management practices. The business, which began operations in 2020, concentrated on supply and demand theories, supply and demand regions, real estate security, and other types of collateral. The areas of expertise of AFCG include first-lien loans, mortgage loans, construction loans, bridge financings, and other unorthodox financing options. The current business activities of AFC Gamma have been centered on the cannabis market, which is expanding quickly. With Verano Holdings Corp.(OTC: VRNOF), the business approved a credit upsize of $250 million as well as a $100 million option.
For the second quarter of 2022, AFC Gamma released financial statements that showed a net income of $11.4 million, or $0.58 per basic weighted average share of common stock. In the second quarter of 2022, the company generated distributable earnings of $13.6 million, or $0.69 per basic weighted average share of common stock. AFC also paid a $0.56 per common share dividend for the second quarter of 2022 on July 15, 2022, an increase of 47% from the second quarter of 2021. The company’s distributable earnings were higher than the declared dividend for the sixth straight quarter, which is significant. According to AFC Gamma, the dividend for the third quarter of 2022, which ends on September 30, will be $0.56 per share. In October AFC Gamma and Viridescent Realty Trust amended a $150 Million credit facility to Acreage Holdings.
AFCG Stock Performance
On October 26th, AFCG shares closed at $16.69, a 5.10 percent increase in the last five trading days. The stock, which has a price range of $14.90 to $25.50, is down 26.66% year to date. Analysts at CNN Business predict that the 12-month average price for AFCG shares will be $22. In comparison to the stock’s most recent trading price of $16.69, this prediction shows a gain of 31.74 percent.
NewLake Capital Partners, Inc.
For cannabis businesses with state licenses, NewLake Capital Partners is a well-known real estate lender. Through sale-leasebacks, third-party purchases, and build-to-suit projects, this triple-net lease REIT makes investments in commercial real estate, including industrial and retail properties. Its tenants include some of the most well-known companies in the nation’s state-licensed cannabis sector, making it a trustworthy real estate partner. Sales during the first quarter of 2022 totaled $10.2 million, up 130 percent over the same period in the previous year, according to the business. Additionally, in the first quarter of 2022, common shareholders received a $5 million net profit distribution. Anthony Coniglio was selected by the company to begin serving as CEO on June 1.
According to information released in August, New Lake’s revenue for the second quarter of 2022 was $10.5 million, a 59% increase over the same period the year prior. For the second quarter of 2022, FFO totaled $6.5 million, AFFO totaled $8.7 million, and net income attributable to common stockholders was $3.8 million. In addition, the corporation owns 10 growing facilities and 17 dispensaries. Several tenants of NewLake Capital include Curaleaf Holdings, Inc. (OTC: CURLF), Cresco Labs Inc. (CRLBF), Trulieve Cannabis Corp. (OTC: TCNNF), and Columbia Care Inc. (OTC: CCHWF). The business will make a $50 million investment in three of its current sites in July.
NLCP Stock Performance
NLCP stock closed at $15.08 on October 26th up 9.62% in the past month. Currently, the stock has a price range of $12.70-$32.00 and is down 47.41% year to date. According to analysts at Market Beat NCLP stock has a 12-month average price target of $27.50 per share. This would represent an increase of 82.31% from its last trading price of $15.08.
Investing Long-Term In The Cannabis Industry
For new investors searching for long-term investments to enter the cannabis business, top marijuana REITs can be a great option. In general, you should always conduct your own research before making an investment in a firm. To determine which companies are the best investments, it’s important to research their financial statements and press releases. These marijuana stocks might be the ones to keep an eye on before November if you want to make long-term investments.
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