Here's How Innovative Industrial Can Afford Its 8.4% Dividend Yield
Innovative Industrial Properties (NYSE: IIPR) is a highly focused real estate investment trust (REIT). Investors viewed that as a good thing when the marijuana industry it serves was held in high esteem on Wall Street. But a pot sector shakeout has turned this focus into a liability in more ways than one.
Still, even with these headwinds, the REIT looks more than capable of supporting its hefty 8.4% dividend yield. Here's what you need to know.
At one point in time, marijuana use was illegal across the United States. And then, in 1996, some laws began to change, opening up an opportunity for companies to build a new, legal, industry. It started with the drug being approved for use strictly for medical purposes in some states, but has since expanded to more states and now includes provisions for recreational use. At this point there are 39 states with legal medical use and 19 where recreational use is allowed.
Source Fool.com
