Is Innovative Industrial Properties' 7.3% Dividend Yield Safe?
Innovative Industrial Properties (NYSE: IIPR) stock has been struggling mightily this year. Down 64%, it has done badly even for a marijuana stock -- the Horizons Marijuana Life Sciences ETF's losses of 44% look modest by comparison. But the real estate investment trust (REIT) still pays its shareholders a generous quarterly dividend of $1.75 per share. At a share price of around $96, that means investors who buy now would be collecting a yield of 7.3%. That's more than four times the 1.6% that the S&P 500 averages today.
Investing less than $14,000 into the stock would be enough to collect a dividend of $1,000 over the course of a year if the current rate holds up. But is this a safe dividend that investors can count on, or are you better off shopping around for other dividend stocks?
Innovative Industrial Properties (IIP) has been an attractive dividend stock to own in the past because the company has been incredibly aggressive with respect to growing its payouts. The $1.75 quarterly payment it makes today is seven times the $0.25 that IIP was paying its shareholders back in July 2018.
Source Fool.com
