My "Top Pick" for more conservative investors in 2025 is Innovative Industrial Properties Inc. (IIPR). It's a Real Estate Investment Trust (REIT) based in San Diego that focuses on the acquisition, ownership, and management of specialized properties leased to state-licensed operators of regulated medical-use cannabis facilities around the country, advises Nate Pile, editor of Nate’s Notes.

Though the stock had been in a nice uptrend prior to the election, it tumbled sharply thereafter, most likely in response to the uncertainty that always comes during the time period between an election and the actual inauguration of new presidents. But history also suggests that rhetoric investors heard about how "the cannabis situation" will evolve under a Trump presidency will most likely prove to be more bark than bite, as the saying goes.

Innovative Industrial Properties Inc (IIPR)
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To be sure, the legalized cannabis industry is still struggling to collectively find a way to make money with so many different dispensaries opening up (and then, in some cases, closing). But in the long run, I believe the industry is not only going to survive, but prosper as well, especially once the product is legalized at the federal level.

In the meantime, Innovative Industrial Properties is well-positioned to capitalize on the continued growth of the industry (no pun intended). Along with the potential for stock price appreciation, the stock's dividend yield of roughly 7% is nothing to sneer at.

I recommend patiently building a position with a series of smaller purchases over a period of time, rather than via a single large purchase made all at once.

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