Is Innovative Industrial Properties a Great Dividend Stock?
Are you looking for a great dividend stock? They're often hard to find, and that's because it takes a lot to be one. The company needs to pay investors an above-average yield, it should increase its payouts regularly, and the dividend payments should also be safe. You want to be able to just buy the stock and not worry about it.
Today, I'll look at whether cannabis-focused Innovative Industrial Properties (NYSE: IIPR) hits all the checkmarks to be considered a great dividend stock. Let's take a close look at not just the company's dividend, but the strength of Innovative's overall operations, to assess whether you should invest in the company today.
Currently, Innovative pays its shareholders a quarterly dividend of $1.06. At a price of about $120 per share, the stock's yielding a little over 3.5% today. If you were to invest in an average stock on the S&P 500, your yield would be closer to 2%. That's a big difference, and it's easier to see when you put it into dollars. A $25,000 investment at a 2% yield would earn you $500 each year. But at a rate of 3.5%, you'd be earning $875, or an extra $275 annually. Imagine you hold the dividend stock for 10 years, and you're now looking at a difference of $2,750. And that's without factoring in any dividend growth along the way.
Source Fool.com
