Cannabis may be controversial. But it’s also proving to be one of the most profitable for some of the top cannabis stocks to buy now. 

Look at Innovative Industrial Properties (NYSE:IIPR), for example. Since bottoming out at around $87.50 in February, it’s now up to $108.69, where it’s again a strong buy opportunity. Better, as you wait for it to recover, you can collect its yield of about 7%.

Or, look at Canopy Growth (NASDAQ:CGC), which rocketed from about $3 to a high of $15. At its current price of $7.12, it is also a strong buy opportunity.

What makes these stocks even more exciting are the catalysts. At the moment, about 88% of the American public wants to see legalization. We’re nearing rescheduling as a Schedule III. There’s speculation we could hear more positive news on potential legalization heading into the election. Florida will soon vote on legalization. And Germany just legalized its use, which could easily set off a domino effect throughout Europe with legalization.

That said, investors should use any weakness in cannabis stocks to buy now as a buying opportunity.

Innovative Industrial Properties (IIPR)

Real estate investment trust (REIT) Innovative Industrial Properties has been explosive. It also leads the list of the hottest cannabis stocks to buy now. 

Helping, it just raised its dividend by 4.4% to $1.90 from $1.82, payable on July 15 to shareholders of record as of June 28.  It focuses on acquiring and managing state-licensed cannabis operators, which could also see substantial growth ahead. 

At the moment, IIPR owns about 108 properties across 19 states with 8.9 million rentable square feet. Plus, 95.2% of its portfolio is triple-net leased. It also just closed a triple net lease agreement with AYR Wellness (OTCMKTS:AYRWF) in Florida for a 16-acre property, which holds about 145,000 sq. ft. of industrial space in Ocala.

Granted, recent earnings were mixed. But that should improve moving forward with several key catalysts ahead. In the first quarter, adjusted funds from operations (AFFO) came in at $2.21, which beat by $0.16. Unfortunately, revenue of $75.5 million, down 0.8% year-over-year (YOY), missed by $3.01 million. 

AFC Gamma (AFCG)

There’s also AFC Gamma (NASDAQ:AFCG), another one of the top cannabis stocks to buy now.

With a yield of 15.5%, the REIT targets direct lending and bridge loan opportunities, specializing in loans to state-licensed cannabis operators. 

Helping, Leonard Tannenbaum, the company’s founder and executive chairman, paid $1.1 million for 88,835 shares, an average price of $12.01 each. Before that, he bought 51,310 shares for $536,180 on May 15, when AFCG traded at $10.45. As noted by Barron’s, he’s excited about the REIT’s spinoff off Sunrise Realty Trust, a commercial real estate lender that serves customers outside of the cannabis industry.

Even better, AFCG declared a dividend of $0.48 per share, payable on July 15 to shareholders of record as of June 24.

Earnings were mixed here, too. While EPS of $0.49 beat by $0.06, net interest income of $14.76 million — down 12.3% YOY — missed by $1.33 million. However, much like IIPR, cannabis sales are likely to increase, which will benefit AFCG.

New Lake Capital Partners (NLCP)

New Lake Capital Partners (OTCMKTS:NLCP) provides real estate capital to licensed cannabis operators through sale-leaseback transactions. That includes 31 properties comprised of 14 cultivation facilities and 17 dispensaries.

The REIT also just raised its dividend to $0.43, payable July 15 to shareholders of record as of June 28.

Plus, earnings were solid. Funds from operations came in at $0.50, which beat by $0.04 — revenue of $12.6 million — up 10.5% YOY — beat by $620,000. Adjusted funds from operations (AFFO) jumped 10.6% year over year to $11 million. 

And, analysts at Compass Point just reiterated a buy rating on the REIT with a price target of $23.50. All after, NCLP posted a significant increase in its AFFO.

After running from about $12 a share to $21, the REIT pulled back to about $19, where it’s starting to bounce. From here, I’d like to see it break above resistance at $21.

ETFMG Alternative Harvest ETF (MJ)

Or, if you want to diversify with cannabis stocks at a lower price, look at the ETFMG Alternative Harvest ETF (NYSEARCA:MJ). With an expense ratio of 0.75%, the ETF tracks the performance of cannabis companies benefiting from global medicinal and recreational use. 

After failing at triple-top resistance, the MJ ETF pulled back to $3.40, where it’s a buy. From here, I’d like to see it retest $4.60 initially. With rescheduling, state legalization and the potential for federal legalization, the MJ ETF could see higher highs with patience.

Some of its top holdings include Tilray (NASDAQ:TLRY), Innovative Industrial, SNDL Inc. (NASDAQ:SNDL), Cronos Group (NASDAQ:CRON), Canopy Growth and AFC Gamma Inc.

Advisor Shares Pure US Cannabis ETF (MSOS)

Another hot cannabis ETF to buy on weakness is the Advisor Shares Pure US Cannabis ETF (NYSEARCA:MSOS). At $7.30, MSOS now sits at support dating back to early January. From here, I’d like to see it initially retest its prior high of $10.50.

With an expense ratio of 0.60%, the MSOS ETF is the first actively managed U.S.-listed ETF with dedicated cannabis exposure focusing exclusively on U.S. companies, including multi-state operators, as noted on the ETF’s site. Some of its top holdings include Green Thumb Industries (OTCMKTS:GTBIF), Curaleaf Holdings (OTCMKTS:CURLF), Trulieve Cannabis (OTCMKTS:TCNNF) and Cresco Labs (OTCMKTS:CRLBF).

As I usually note, ETFs are a great investment. Not only do they allow you to diversify with dozens of stocks, but they’re also cheaper. For example, you can buy MSOS ETF for less than $8 while gaining exposure to its 25 holdings.

Curaleaf Holdings (CURLF)

At $4, Curaleaf Holdings (OTCMKTS:CURLF) could rocket as we near the election.

For one, it should also benefit from rescheduling and potential legalization in Florida. 

Remember, “The Supreme Court’s decision to allow the legalization of cannabis to appear on ballots this November holds the key to unlocking a potential tripling of the total cannabis market in Florida to $6 billion in sales, as noted by Benzinga.com.”

Two, Alliance Global Partners just raised its price target to $12. Also, while earnings weren’t anything to write home about, those numbers should improve with potential legalization in Florida and its growing global footprint in Europe.

In addition, according to CEO Matt Darin, “Our unique exposure to the most significant catalysts on the horizon – continued expansion of the NY market, expansion of Pillar 1 in Germany, and adult use in Ohio, Florida and Pennsylvania sets us up for robust growth in 2025 and beyond.”

Trulieve Cannabis (TCNNF)

At just $9.09, Trulieve Cannabis (OTCMKTS:TCNNF) could see higher highs — especially if we see cannabis legalization in Florida. 

Alliance Global Partners even noted that TCNNF is best positioned for that. Analysts at Needham also raised their price target on TCNNF to $14.50 with a “buy” rating. Analysts at Canaccord also raised their price target to $38, with a buy rating. 

Plus, if Florida legalizes adult use, the state could see a windfall of $4.5 billion from sales by 2028, says Business Insider. Better yet, earnings have also been strong.

Its first-quarter EPS loss of $0.05 was beat by $0.06. Revenue of $298 million — up 4.6% year over year — was also beat by $12.27 million. The company generated a free cash flow from operations of $139 million and a free cash flow of $124 million. 

Technically, after failing at overhead resistance, TCNNF just caught support at its 200-day moving average, which is about $9.09. From here, I’d like to see it initially retest at $14 a share.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.