Is Innovative Industrial Properties (IIPR) One of the Safest REIT Dividend Stocks?

Innovative Industrial Properties, Inc. (NYSE:IIPR) is included among the 12 Best REIT Dividend Stocks to Buy Now.

Innovative Industrial Properties, Inc. (NYSE:IIPR) is a real estate investment trust company that specializes in the acquisition and management of cannabis-related facilities. As of the company’s recent report, it has 108 properties across 19 states.

Innovative Industrial Properties, Inc. (NYSE:IIPR)’s income is primarily derived from long-term triple-net leases, in which tenants pay for property taxes, insurance, and maintenance in addition to rent. This arrangement is intended to provide a consistent and predictable cash flow.

The success of Innovative Industrial Properties, Inc. (NYSE:IIPR) relies on the ability to pick good tenants in a tightly regulated industry subject to constant legal reform. Among top priorities are to manage tenant concentration risk, deal with regulatory headwinds, and maintain financial flexibility.

Innovative Industrial Properties, Inc. (NYSE:IIPR) is a solid dividend company. The company last announced a dividend hike in June 2024, which was its eighth consecutive year of dividend growth. It hasn’t announced any increase in payout this year, but its financial position is sound, which suggests that it could be on the horizon. Currently, it offers a quarterly dividend of $1.90 per share and has an attractive dividend yield of 13.75%, as of October 1.

While we acknowledge the potential of IIPR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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