IIPR stock is gaining momentum on Tuesday after Innovative Industrial Properties Inc (NYSE:IIPR) declared $1.00 per share quarterly dividend.
The cannabis industry has been through a prolonged slowdown, and many companies within the industry have found it difficult to maintain their growth targets. However, nothing of the sort has affected the real estate investment trust Innovative Industrial Properties (IIP). The company primarily works with the cannabis industry and has continued to grow impressively.
In a new development, the company today announced quarterly dividends of $1.00 per share for its shareholders, which reflects a rise of as much as 28.2%. Shareholders as of December 31 are going to be paid the dividends on January 15 next year.
The forward yield for the period stands at an impressive 5.49%. IIP has been one of the best stocks in the cannabis industry and has managed to become a cash-generating phenomenon so far. The company;s businness is buying a property and then leasing it out to a cannabis producer.
At the time of writing, IIPR stock is up 3% at $75.
In its third quarter, Innovative Industrial Properties' revenue shot up to $11.2 million, which reflects a more than threefold year-on-year rise. Earnings for the period came in at $6.2 million, which reflected a fourfold rise from the prior-year period. It beat Wall Street expectations with ease.
At this point in time, there is no particular reason why the company’s growth is going to slow down. Currently, Innovative Industrial Properties has as many as 41 properties spread across 13 states, and it is important to note that out of those, 30 properties were acquired in 2019. The cannabis industry is still at its early stages in many of the states in which the company operates.
In addition to being profitable, IIP has also managed to create a cash position amounting to $318 million.
IIPR stock is one of the top performers in 2019, with a gain of over 65%.
Featured image: DepositPhotos © AndreyPopov