This ~16%-Yielding Dividend Stock Is a ’Strong Buy,’ Says Top Investor

Wall Street's latest obsession delivers jaw-dropping returns while traditional finance scrambles to catch up.

The Yield Revolution

Forget bonds and savings accounts—this equity powerhouse generates nearly 16% in dividend returns, outperforming most crypto yields without the volatility headaches. Top investment firms stamp it with their strongest endorsement while traditional banks offer single-digit returns.

Dividend Dominance

The company's cash flow machine keeps churning out distributions that make Treasury bills look like pocket change. While crypto yields fluctuate with market sentiment, this stock's dividend track record shows consistent performance quarter after quarter.

Institutional Confidence

Major funds pile into the position, betting that old-school fundamentals can still deliver new-school returns. The 'strong buy' rating comes from analysts who typically scoff at double-digit yields—calling this one fundamentally different.

Traditional finance finally admits what crypto investors knew years ago: real yield matters more than empty promises. Too bad it took them this long to figure it out.

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IIPR stock has fallen ~28% over the past year, as the cannabis sector continues to struggle with weak operator liquidity and stalled momentum on federal cannabis rescheduling. Yet, for some investors, that combination of an elevated yield and a depressed share price may hint at a buying-the-dip opportunity.

And there are developments that keep that thesis alive. Those eager for rescheduling from Schedule I to Schedule III (which would classify marijuana as a less dangerous drug) can point to recent executive and legislative signals. Back in August, President Donald J. TRUMP noted that his administration is weighing executive action, while parallel efforts in Congress aim to advance the same shift.

Such a modification, were it to occur, could be a significant boost for IIPR, an REIT that bills itself as “the leading provider of real estate capital for the regulated cannabis industry.”

Despite the hiccups and the uncertainty around timing, top investor Julian Lin still believes the company’s elevated dividend yield makes it worthwhile to stick around.

“The company is not yet out of the woods, but the generous dividend yield helps make it easier to wait,” explains the 5-star investor, who is among the top 1% of all stock pros covered by TipRanks.

Lin, like many others, remains hopeful that rescheduling eventually materializes. Such a change WOULD meaningfully improve the financial health of the REIT’s tenants and, by extension, IIPR. Even if that catalyst doesn’t arrive soon, the investor still sees supportive fundamentals. He highlights the company’s balance sheet as its “single most important positive factor.”

Compared with peers carrying 5x–6x debt-to-EBITDA, IIPR’s outstanding debt of $341.2 million translates into a much lower ratio of roughly 1.5x.

“The conservative leverage ratio creates a large ‘margin of safety’ from a financial solvency perspective,” emphasizes Lin.

As for the high dividend yield, Lin acknowledges he was surprised the company chose not to trim the payout – cash that could have been redirected toward portfolio diversification. Still, he remains unconcerned about a potential refinancing squeeze, again pointing to IIPR’s conservative leverage profile.

Moreover, even if the entire cannabis sector suffers from restructuring debt and lease arrangements, Lin believes that IIPR “has already priced in much of the worst.”

“I reiterate a Strong Buy rating, emphasizing its margin of safety, high yield, and upside potential despite sector uncertainties,” sums up Lin. (To watch Lin’s track record, click here)

Wall Street, for now, remains more cautious. With 1 Buy, 2 Holds, and 1 Sell, IIPR stock carries a Hold (i.e., Neutral) consensus rating. Still, the Street’s average price target of $61.33 suggests ~28% upside over the next 12 months. Based on the current dividend yield and the expected price appreciation, the stock has a 43.5% potential total return profile. (See)

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