Innovative Industrial Properties offers 13.4% dividend yield with low leverage and sector tailwinds.

Innovative Industrial Properties (IIPR) provides a high dividend yield of 13.4%, supported by a conservative balance sheet with low leverage (1.7x debt/EBITDA) and favorable regulatory changes in the cannabis sector. Despite tenant concentration risks and cannabis market volatility, the company’s dividend is seen as relatively secure, with potential for future growth as re-leasing activity and sector stabilization improve adjusted funds from operations (AFFO). The stock is rated a strong buy due to its risk-adjusted upside and potential for re-rating. Investors should watch for possible dividend cuts, which appear to be priced in already.