These cannabis stocks are going to perform well as legalization grows

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Cannabis continues to offer solid options for investors and the future holds a lot of promise

The legalization of cannabis has been generating an explosion of companies, cooperatives, associations, and individual producers who saw a great business opportunity. The legalization of cannabis consumption is an open debate in a large number of countries, not only in the US, but this debate opens the door to investing in a sector that could grow significantly in the coming years, as some of the forecasts from expert sources in the field show. As more green lights continue to appear in the industry, investors can start to see the benefits if they know how to choose the right stocks to invest in.

One of them is AFC Gamma, a company that provides different types of financing, such as construction and mortgage loans. AFC seeks to help cannabis companies in their development, taking into account that they cannot obtain traditional financing from banks because the plant is still federally illegal. With legalization also occurring in Europe, related stocks could record higher highs.

Innovative Industrial Properties (IIP) is another company that could benefit as legalization expands. This hot marijuana stock that pays high dividends is a fairly solid real estate investment trust (REIT).

The firm currently owns 111 properties and approximately 8.7 million rentable square feet that it leases to marijuana operators operating in a legal state. IIP is delivering solid results, and analysts expect that to continue for quite some time.

And finally, there is NewLake Capital Partners, another stock with good dividends. This firm provides real estate capital to state-licensed marijuana operators.

Its portfolio of over 32 cultivation facilities and dispensaries is currently leased to individual tenants on a triple-net basis, much like how IIP operates. The company has a business model that will remain profitable even as reform becomes a reality.