IIPR - Is This 7.4%-Yielding Dividend Stock the Best Bargain Out There for Income Investors?
2024-03-13 05:30:00 ET
Investing in a dividend stock these days can come with a bit more risk than usual. With economic conditions not the strongest in many industries, dividend cuts have become more common.
One real estate investment trust (REIT) that has proven to be resilient, at least for now, is Innovative Industrial Properties (NYSE: IIPR) . The cannabis-focused REIT has not only kept its payouts intact, it has even increased them. At 7.4%, is this dividend stock a potential bargain for income investors?
The big number investors should always consider when analyzing the safety of a REIT's dividend is its funds from operations , or FFO. FFO doesn't factor in some of the items that can muddy regular accounting profits, such as one-time gains and losses, and non-cash amortization expenses. Thus, it can better reflect how a REIT is actually doing.
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Is This 7.4%-Yielding Dividend Stock the Best Bargain Out There for Income Investors?