Best Ancillary Pot Stocks to Invest in July 2025 Amid Federal Legalization Delays
The U.S. cannabis industry continues its rapid expansion. In 2025, the legal market is projected to reach nearly $45 billion. Its total economic impact may exceed $120 billion by year-end. Recreational cannabis is now legal in 24 states, while medical use is permitted in 40 states. Public support for legalization remains strong, with approval ratings near all-time highs. Additionally, major beverage companies are entering the cannabis space, signaling wider mainstream acceptance. Although federal reform is still pending, investors continue to show interest. As a result, ancillary cannabis stocks are gaining momentum. These companies offer exposure without the risk of handling the plant directly. Investors can improve timing by using technical analysis. Watching key support and resistance levels is essential. Equally important is applying risk management. Always use stop-loss orders and control position sizing to protect capital.
This week brings important developments in the cannabis space. Large consumer companies are expanding into cannabis-infused products, creating new competition and opportunities. Meanwhile, federal rescheduling remains uncertain due to ongoing political resistance. These headlines may cause short-term volatility. Therefore, traders should rely on technical indicators for clarity. Tools like moving averages, RSI, and Bollinger Bands can help identify trend shifts and breakout zones. Moreover, proper discipline is critical in this environment. Setting stop losses helps reduce downside risk. Maintaining diverse positions can limit exposure to sector-specific moves. Position sizes should reflect one’s risk tolerance and account size.
Ancillary Plays for Real Estate and Lending Gains
While the sector remains unpredictable, its long-term outlook stays promising. Combining market news, chart signals, and sound risk strategies can help traders make better decisions. As the market evolves, ancillary stocks could provide safer entry points with strong upside potential. Watching these names closely this week could offer timely opportunities.
As the U.S. cannabis industry expands, ancillary companies continue to attract attention. These firms do not grow or sell cannabis directly. Instead, they support the industry through real estate, financing, and infrastructure. Ancillary cannabis stocks offer investors exposure with reduced regulatory risk. Many also provide consistent dividends and strong asset-backed portfolios. In July 2025, three standout companies include Innovative Industrial Properties (IIPR), NewLake Capital Partners (NLCP), and Chicago Atlantic Real Estate Finance (REFI). Each plays a distinct role in supporting legal cannabis operators nationwide.
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Top 3 Ancillary Cannabis Stocks to Watch in July 2025 for Growth and Dividends
- Innovative Industrial Properties Inc. (NYSE: IIPR)
- NewLake Capital Partners Inc. (OTC: NLCP)
- Chicago Atlantic Real Estate Finance Inc. (NASDAQ: REFI)
Innovative Industrial Properties Inc. (IIPR)
Innovative Industrial Properties is a real estate investment trust. It focuses exclusively on cannabis-related industrial properties. The company is headquartered in California and trades on the NYSE. Its core strategy involves acquiring specialized facilities and leasing them to licensed cannabis operators. Over time, IIPR has built a vast footprint. It currently owns more than 100 properties across 19 U.S. states. These assets serve medical and adult-use cannabis cultivators and processors. IIPR’s tenants are primarily multi-state operators with long-term leases. Therefore, the company maintains steady, recurring income from rental contracts.
In terms of financials, IIPR delivered stable performance through the second quarter of 2025. The company continues to collect rent on its triple-net leases. Revenue remains predictable due to long-term agreements. Though book value declined slightly earlier this year, earnings have remained consistent. Profitability is supported by strong lease terms and dependable tenants. IIPR also remains committed to returning capital to shareholders. It has paid dividends each quarter since 2017. The current share price hovers around $55, with dividend yields remaining attractive for income-focused investors.
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NewLake Capital Partners Inc. (NLCP)
NewLake Capital Partners is a growing REIT with a focus on cannabis real estate. It owns properties used by licensed operators in both cultivation and retail. The company uses sale-leaseback and build-to-suit strategies to grow its portfolio. At present, NLCP owns 34 properties. These include 15 cultivation facilities and 19 dispensaries. The assets span multiple legal cannabis states, supporting various operators across the supply chain. NewLake aims to provide secure real estate solutions while offering investors exposure to a growing industry.
Financially, NLCP has maintained a steady track record. In the second quarter of 2025, the company declared a dividend of $0.43 per share. That payout represents an annualized dividend of $1.72. Cash generation has remained consistent, with solid rent collections from tenants. Occupancy rates remain high across the portfolio. Furthermore, management remains optimistic about growth and sustainability. A Q2 earnings call scheduled for early August is expected to highlight strategic updates. With a well-diversified property base, NLCP offers investors strong yield and long-term real estate value.
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Chicago Atlantic Real Estate Finance Inc. (REFI)
Chicago Atlantic Real Estate Finance is a commercial mortgage REIT. It specializes in lending to legal cannabis businesses across the United States. Rather than owning real estate, REFI provides debt capital to operators. These loans are secured by cannabis-related assets or operations. The company works with both large and emerging cannabis companies. It offers capital for expansion, facility purchases, or working capital. REFI’s portfolio includes loans across cultivation, manufacturing, and retail segments. Its lending model helps operators grow without diluting equity.
From a financial standpoint, REFI reported strong results in the first quarter of 2025. The company generated nearly $62 million in interest and dividend income. It paid about $7.1 million in interest expense, leaving a healthy profit margin. Its net interest income remains solid amid market uncertainty. Portfolio quality remains strong, with low delinquency rates. REFI’s shares currently trade around $13.64. The company continues to focus on conservative lending and disciplined underwriting. As cannabis operators seek non-dilutive funding, REFI remains a key player in the space.
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Safer Marijuana Investments: Top Ancillary Cannabis Stocks for July 2025
Ancillary cannabis stocks provide a compelling option for investors seeking lower risk exposure to the cannabis sector. Unlike plant-touching businesses, these firms avoid direct regulatory complications. They also offer more stable business models through real estate or debt instruments. In July 2025, IIPR, NLCP, and REFI stand out for their income potential and strategic positioning. Each serves a critical role in supporting the growth of legal cannabis across the United States. While cannabis reform remains a work in progress, these ancillary leaders are worth watching closely.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
