Sure Dividend

Published on October 20th, 2025 by Felix Martinez

High-yield stocks pay out dividends that are significantly more than the market average dividends. For example, the S&P 500’s current yield is only ~1.2%.

High-yield stocks can be very helpful to shore up income after retirement. A $120,000 investment in stocks with an average dividend yield of 5% creates an average of $500 a month in dividends.

Innovative Industrial Properties (IIPR) is part of our ‘High Dividend 50’ series, which covers the 50 highest-yielding stocks in the Sure Analysis Research Database.

We have created a spreadsheet of stocks (and closely related REITs and MLPs, etc.) with dividend yields of 5% or more.

You can download your free full list of all securities with 5%+ yields (along with important financial metrics such as dividend yield and payout ratio) by clicking on the link below:

Click here to instantly download your free high dividend stocks spreadsheet now, along with important investing metrics.

Next on our list of high-dividend stocks to review is Innovative Industrial Properties (IIPR).

Business Overview

Innovative Industrial Properties (IIPR) is a real estate investment trust (REIT) that owns and leases facilities used for cannabis cultivation and production. Because cannabis businesses face limited access to traditional financing, IIPR fills a critical funding gap by providing real estate capital.

As the first publicly traded REIT focused on the cannabis sector, IIPR maintains a strong first-mover advantage despite growing competition. The company has steadily expanded its portfolio and continues to benefit from high demand for specialized cannabis properties.

As of June, IIPR owned 108 properties across 19 states, representing a total value of about $2.5 billion. Its exclusive position as a listed cannabis-focused REIT and its early entry into the market make it a standout player in this niche industry.

Source: Investor Relations

The company reported weaker second-quarter 2025 results due to tenant defaults and property sales. Revenue fell 21% year-over-year to $62.9 million, and EPS declined to $0.86 from $1.44, missing estimates. Net income dropped to $25.1 million, while AFFO decreased 25% to $48.4 million. Despite the downturn, the company maintained over $190 million in liquidity and paid a $1.90 quarterly dividend, continuing its strong shareholder return record.

The decline was mainly driven by rent defaults from major tenants, including PharmaCann, Gold Flora, TILT Holdings, and 4Front Ventures. IIP launched a strategic initiative to replace weak operators with financially stable tenants and sold underperforming properties in Michigan and California. The REIT’s portfolio now includes 108 properties across 19 states, totaling 9 million rentable square feet.

Financially, IIP remains solid with just 11% debt to total assets and a 15x debt service coverage ratio. During the quarter, it repurchased $19.8 million of stock and issued $4 million of preferred shares. Although earnings declined, IIP’s strong balance sheet, ample liquidity, and focus on higher-quality tenants support its long-term stability in the cannabis real estate sector.

Growth Prospects

Innovative Industrial Properties (IIPR) is well-positioned for long-term growth as the U.S. cannabis market continues to expand. Ongoing state-level legalization and rising demand for cultivation facilities create strong leasing and acquisition opportunities. With a solid balance sheet and low debt, IIPR can continue adding new properties and re-leasing vacated assets to financially stronger tenants.

The company’s triple-net lease structure ensures steady income and supports dividend growth. While short-term tenant issues have weighed on results, IIPR’s strategy to improve tenant quality and diversify its portfolio strengthens its long-term outlook. Its first-mover advantage and access to public capital make it a key player in the growing cannabis real estate sector.

Source: Investor Relations

Competitive Advantages & Recession Performance

Dividend Analysis

The company pays an annual dividend of $7.60 per share, resulting in a high yield of 14.2% at its current stock price.

Based on the 2025 earnings outlook, Adjusted Funds From Operations (AFFO) is projected at $6.54 per share, implying that the dividend would represent approximately 116% of AFFO.

This payout level suggests the dividend may not be sustainable, with a significant risk of a reduction. Nevertheless, the 14.2% yield remains attractive for investors primarily seeking income.

Final Thoughts

Innovative Industrial Properties is a unique player in the U.S. cannabis real estate market, leveraging its first-mover advantage, specialized portfolio, and access to public capital. While recent tenant defaults and high dividend payouts pose short-term challenges, the company’s strong balance sheet, diversified property base, and long-term triple-net leases provide stability and growth potential.

Investors should weigh the attractive income from the 14.2% dividend against the sustainability risk, but IIPR’s strategic position in a growing industry positions it well for long-term value creation. Overall, the REIT offers a compelling opportunity for those seeking exposure to the regulated cannabis sector with a focus on income and capital appreciation. However, we have a Hold rating at the current price.

High-Yield Individual Security Research

• 20 Highest Yielding Monthly Dividend Stocks
• 10 Super High Dividend REITs
• 5 Highest Yielding Royalty Trusts

Other Sure Dividend Resources

• Dividend Kings: 50+ years of rising dividends
• Dividend Champions: 25+ years of rising dividends
• Dividend Aristocrats: 25+ years of rising dividends and in the S&P 500
• Dividend Achievers: 10+ years of rising dividends and in the NASDAQ
• High Dividend Stocks: 5%+ dividend yields
• Monthly Dividend Stocks: Individual securities that pay out every month
• MLPs: List of MLPs and more
• REITs: List of REITs and more
• BDCs: List of BDCs and more