Several cannabis stocks make great contenders for investment portfolio expansion

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Analysts believe 2023 could be a good year for a number of cannabis stocks

The importance of diversifying an investment portfolio is to help limit exposure to significant market losses. At times when the market is doing well and an investor is not receiving the return they desire, it is important to remember that the goal of diversification is not to maximize returns but to minimize losses during downturns. Some cannabis stocks seem to look good for many investors looking to take advantage of the benefits of expanding their portfolios.

Experts say there are cannabis stocks that could double in the coming months, and one of the first names to come to light is AFC Gamma. This commercial real estate investment trust (REIT) is responsible for providing access to financing, something that the cannabis industry continues to face many obstacles.

As is well known, federal law prevents marijuana companies from obtaining regular financing from banks. That’s when firms like AFC Gamma come to the rescue after putting options such as mortgage and construction financing on the table. It’s certainly a good bet to start 2023 on the right foot.

NewLake Capital Partners is another stock that pays juicy dividends to its investors year after year. This firm provides real estate capital to state-licensed cannabis operators.

NewLake has “a portfolio of 32 cultivation facilities and dispensaries that are leased to individual tenants on a triple-net basis.” Simply put, tenants not only pay monthly rent, but also are responsible for covering insurance, maintenance, taxes, and utilities associated with the leased properties.