The fast-growing marijuana industry is full of opportunities for long-term investors. From growers to retailers to ancillary providers, there's something for every type of investor, no matter their risk tolerance.

While some pot stocks have earned their status as premium buys for long-term investors' portfolios, others have generated significant hype without the businesses or balance sheet growth to support it. Today, we're going to look at two fantastic investments within the marijuana space. Both cannabis stocks have generated significant returns for shareholders and are on track to achieve incredible growth in the years ahead.

Let's dive right in.

excited marijuana greenhouse worker checking orders on laptop

Image source: Getty Images.

1. Innovative Industrial Properties

Innovative Industrial Properties (IIPR -2.99%) is something of a unicorn in the marijuana industry. The company isn't in the business of marijuana cultivation or retail, nor does it sell gardening supplies to growers. Instead, it's a real estate investment trust.

The company owns a substantial portfolio of properties that include greenhouses and other key cultivation facilities. It leases these facilities only to growers that are licensed in the state of operation, and it only accepts tenants who cultivate marijuana for medical purposes.

Arizona, California, Colorado, Florida, and Illinois are some of the states where Innovative Industrial Properties has a presence.  While marijuana legalization is expanding across the country, medical-use cannabis is far more broadly legalized in the U.S. than recreational cannabis.

The REIT has situated itself in a highly lucrative and far more stable market by choosing to only lease to licensed medical-use cannabis growers. According to recent data provided by Global Market Insights, the U.S. medical marijuana market was valued at more than $7 billion in 2020 and is on track to surpass a valuation of nearly $15 billion by the year 2027.

Astounding surge in revenue and net income 

Has this translated to substantial profits for Innovative Industrial Properties? Absolutely. In 2020 alone, the company reported that its revenue increased 162% and net income rose by 191% from the prior year. In the first half of 2021, the company's revenue and net income surged by 101% and 119%, respectively, from the same period in 2020.

As if you need icing on the cake, Innovative is one of the few pot companies that pays a dividend. The company regularly raises its payout and just announced a 28% year-over-year increase to its third-quarter dividend. It now yields 2.6%, compared to the S&P 500's average of 1.3%.

Whether you're already a seasoned marijuana investor or are newer to this space and want to dip a toe into the world of pot stocks, Innovative Industrial Properties is a no-brainer pick right now.

2. Jushi Holdings

Jushi Holdings (JUSHF -0.63%) is the kind of stock that most investors think of when looking at the marijuana industry. The multi-state cannabis operator has a fast-growing portfolio of dispensaries and retail locations that run from coast to coast.

Jushi Holdings has locations in Pennsylvania, Illinois, California, Virginia, and Massachusetts. The company's most substantial presence is in Pennsylvania, where it has 15 stores.

It also just recently completed the acquisition of an Ohio-based medical cannabis processor, which added an 8,000-square-foot facility to its portfolio. Jushi sells several of its products in Ohio through various local partners, so this processing facility will significantly ramp up its production capabilities there. Marijuana has only been legalized for medical use in the state, where the latest estimates show that dispensary sales could hit $425 million in 2021 alone.

Brand expansion sparks market growth 

Jushi Holdings also maintains a robust e-commerce presence through its online store, called The Jushi Shop, where it sells products from its collection of cannabis brands. These include its edible brand Tasteology and The Bank, which sells packaged flower, infused blunts, and other products.

The company's dedication to growing its brand and venturing into new and established markets has resulted in tremendous growth. In the most recent quarter, it reported a 220% year-over-year revenue increase and a 194% jump in its gross profits from the year-ago period.

While Jushi has made several important acquisitions in recent months in Ohio, California, and Virginia, it has maintained strong liquidity and kept its debt ratio manageable. As of June 30, the company had $127 million in cash and investments on its balance sheet, with a far lesser $60 million in total current liabilities.

Shares are nearly 80% higher than just one year ago, but they still cost less than $5. So investors can capitalize on the company's long-term growth trajectory with even a modest investment.