This High-Yielding Dividend Stock Is Now Paying 6.5%

An advantage of adding dividend stocks to your portfolio as prices are falling is that you're locking in a higher-than-normal yield. As long as the company's fundamentals remain strong, the dividend is likely to remain intact. That can make buying on the dip a great move over the long haul.

One stock that has been crashing of late that income investors should consider is Innovative Industrial Properties (NYSE:IIPR). The cannabis-focused real estate investment trust is currently paying a dividend of $7 per share over the course of a full year. With Innovative's share price down nearly 60% since the start of the year, its yield is now up around 6.5%. Before the selloff, it was yielding less than 3% back in January.

The business still looks sound and with Innovative reporting free cash flow of $206 million over the trailing 12 months and paying just $141 million of that in dividends. Last year, the company's revenue totaled $205 million and was up 75% year over year. And compared to 2019, the top line has more than quadrupled.

But the business is likely to keep growing even though marijuana remains federally illegal. More growth is coming for the marijuana sector in the years ahead. For both dividend and growth-oriented investors, this could be a great REIT to add to your portfolio. Not only has the company been growing by adding properties and bringing on new tenants but it has made for a great dividend stock to hang on to. Now could be an optimal time to buy the stock before it recovers.