Don't Wait for a Market Crash to Buy This Growth Stock
After a recent stumble, the market has again rallied toward all-time highs. That's a pattern investors have gotten used to, buying the dips in the expectation of a swift return to gains. Someday those gains won't be so quick to come back -- but the real question investors should be asking about individual stocks is whether or not their unique fundamentals support their valuations. Often that's not the case, but for Innovative Industrial Properties (NYSE: IIPR), there's good reason to believe that dividend growth investors will find today's prices well worth paying.
Innovative Industrial is a real estate investment trust (REIT) that invests in the marijuana sector using the net lease approach. There's a lot to unpack there.
First, REITs are specifically designed to pass income on to shareholders. On one side of the spectrum, some REITs have low yields so they can put cash to work growing the business, and on the other side some have high yields and low growth rates because most of the cash goes out the door to shareholders. Innovative Industrial is somewhere in between. It has grown swiftly and has a relatively modest 2.6% dividend yield at recent prices, but it has also rewarded income investors exceptionally well.
Source Fool.com
