I’ve finally made it official and sold AT&T stock from our dividend portfolio. You can check out the last dividend portfolio update here. This past week, I bought IIPR stock to replace it. Innovative Industrial Properties Inc is a REIT (real estate investment trust) that focuses on cannabis real estate. To me, this is a two-for-one deal!
IIPR stock pays out dividends since they are a REIT. This is the first obvious reason we like Innovative Industrial Properties – ongoing monthly or quarterly payouts regardless of how well the market is doing. It’s the first week of owning this stock and we’re already seeing a return! That said, REITs can be volatile which is why we like the dividend payments that come when the market is down and high.
But the second reason we specifically chose IIPR stock is that they are focused on a unique and growing industry, cannabis. We all know the cannabis industry will only get bigger so we will be able to build up our position over time with the progress of legalization. So regardless if the cannabis industry takes off next year or in 5 years, we’ll be good to go! IIPR has a healthy growing dividend yield of like 2.5% so it helps to give a nice balance to NEWT stock which has a higher yield of 8%.