The landscape of cannabis investments holds both controversy and potential profitability, making it a hotbed for investors seeking high returns. With shifting public sentiment and political momentum, investing in cannabis stocks could become increasingly lucrative this year. Here are three top cannabis stocks worth considering as we head into April.
Embracing Innovation with Innovative Industrial Properties (IIPR)
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First up is Innovative Industrial Properties (NYSE:IIPR), a company that I previously identified as an opportunity when it traded at around $94. Despite some profit-taking after reaching a recent high of $105.01, the current price of $100.02 presents a compelling entry point for investors.
Notably, IIPR offers a substantial yield of about 7.22%. The company recently declared a dividend of $1.82 per share, payable on April 15 to shareholders as of March 28. With solid financials showing growth in revenues and funds from operations, IIPR’s future earnings potential looks promising.
Surging Forward with AFC Gamma (AFCG)
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AFC Gamma (NASDAQ:AFCG) is another promising player in the cannabis market. After reaching a recent high of $12.87 from around $11.50 on August 14, the stock is showing resilience amid profit-taking, offering a potential entry point for investors.
With a dividend yield of 15.32% and positive earnings in the latest quarter, AFCG is gaining traction among analysts, with firms like TD Cowen endorsing the stock with a buy rating and a price target of $15. The company’s strategic move to focus on cannabis lending is seen as a positive step towards future growth.
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NewLake Capital Partners (OTCMKTS:NLCP) offers investors a yield of 8.55% and recently increased its dividend. With solid earnings and a growing portfolio of properties, NLCP is positioned for further expansion.
Furthermore, with revenue and net income showing year-over-year growth, analysts are bullish on NLCP, with Compass Point upgrading the stock to a buy rating and setting a price target of $18.25.
“We believe we have a portfolio of high-quality assets, strong operating results and cash flow, an unencumbered balance sheet and a growing pipeline of opportunities to invest in,” added CEO Anthony Coniglio.
On the date included in this article, Ian Cooper had no direct or indirect holdings in the mentioned securities. The views expressed herein are solely those of the author and abide by the InvestorPlace.com Publishing Guidelines.
