Missing out on a great opportunity with a 3% dividend yield isn’t that reprehensible? Possibly, there are many populations in these areas. but there is only one Innovative industrial properties (WKN: A2DGXH), which is currently shaking up the paying stock segment with strong dividend growth.
The question of whether you have missed out on this great opportunity is therefore possibly extremely relevant. But first the good news: no, for foolish investors this opportunity will continue to exist.
The best opportunity with a 3% dividend yield in sight!
That’s because Innovative Industrial Properties still has a dividend yield of over 3% right now. With a current share price of $199.59 and a quarterly dividend of $1.75 per share, the payout yield is currently 3.50%. That’s a level that still offers a lot of potential for passive income.
Especially as the US Cannabis REIT has recently shown that it really is a great opportunity with strong dividend growth. Just a few days ago, management announced that the dividend would increase from $1.50 to $1.75. That’s really solid quarter-over-quarter growth, up 16.7%.
But other key figures also underline that the great opportunity of Innovative Industrial Properties has not been overlooked for the time being. With funds from operations per share of $1.85 on an adjusted basis, the price-FFO ratio is currently around 27. A valuation metric that has been consistent with strong double-digit growth in funds from operations per share of late has not it seems very expensive.
Enterprise-oriented, there is a solid foundation for further growth. After all, the cannabis REIT currently owns just over 100 different properties. Therefore, any acquisition should continue to have a very direct impact on funds from operations per share. So the growth, as is typical for a REIT, is partially financed by dilution.
Favorable valuation for strong growth!
As such, Innovative Industrial Properties continues to be an exciting dividend stock. O: A great opportunity with a dividend yield of more than 3%. The 3.5% payout yield already illustrates a strong valuation measure. But the other key figures also show a very fair level of dividend growth. The key is to maintain growth in the medium and long term. In recent quarters, management has not disappointed here.
That is why Innovative Industrial Properties deserve a closer look even now. When do income investors have a chance to buy such a clear and proven dividend growth stock at such a valuation? Despite the possible risks, this is rarely the case.
The article Did You Miss This 3%+ Dividend Yield Opportunity? first appeared in The Motley Fool Germany.
Vincent owns shares of Innovative Industrial Properties. The Motley Fool owns stock and recommends Innovative Industrial Properties.
Motley Fool Germany 2022