The early months of 2024 have certainly brought a series of excellent market days for investors. With the S&P 500 setting multiple new records so far in 2024, many investors are feeling increasingly optimistic about putting cash into stocks compared to several months ago.
Wall Street has a habit of slipping into a bear market once every four years on average. But the good news: In every case, the market has not just recovered but also eventually reached new highs.
Bull markets tend to appear every five to six years on average, and they are usually much longer than bear markets. So if you invest in great companies, hold on to them, and keep investing during both the highs and lows, you can benefit from the best and worst days of the stock market.
On that note, if you have $1,000 to invest right now, here are two fantastic companies to consider.
1. Innovative Industrial Properties
Innovative Industrial Properties (NYSE: IIPR) is something of a unicorn in the world of marijuana stocks because it doesn’t actually grow and sell pot. Instead, the company operates as a real estate investment trust (REIT).
Innovative Industrial Properties acquires cultivation facilities, distribution centers, and other related real estate from state-licensed cannabis operators. It then rents these facilities back to the operators via long-term arrangements.
This model provides recurring rental income for Innovative Industrial Properties and offers more efficiency for the operators by letting them focus on the business of growing and selling marijuana.
It’s important to note that the REIT only rents to operators in the medical cannabis business, which is more regulated and enjoys much broader legalization nationwide than the recreational use market. At the time of this writing, about 90% of Innovative Industrial Properties’ portfolio was rented out to multi-state operators (MSOs), and around 60% of its tenants are publicly traded companies.
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In 2023, the company reported revenue of $310 million and net income of $164 million. Those two figures rose 12% and 5%, respectively, from…
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