Top 3 High-Yield Dividend Stocks To Weather The Upcoming Recession

Dividend Stocks have outperformed the broad market by 222% over the past 60 years and have proven to be some of the best investments during a recession.

That’s why we here at Profit Alerts have isolated the top 3 dividend stocks to create lucrative passive income, even during the worst recessions

Stock #1: Blackstone Mortgage Trust Inc. (BXMT)

Dividend Yield: 11.6%
52-Week Range: $20.39 – $32.90

REIT investors looking to maximize yields can consider mortgage REITs, which are a special type of REIT that do not own or lease properties. Instead, these REITs invest in mortgage-backed securities that pay out interest income. Due to the embedded leverage used, mortgage REITs can often pay out yields that are much higher than the underlying securities they hold.

A possible mortgage REIT to consider here is BXMT, which makes investments in senior loans collateralized by a portfolio of commercial properties. Currently, BXMT's senior loan portfolio stands at $26.8 billion off a total of 203 loans. The portfolio has a weighted-average loan-to-value ratio of 64%. Currently, BXMT pays a very high dividend yield of 11.6% but hasn't seen much historical share price appreciation.

Stock #2: Iron Mountain Inc. (IRM)

Dividend Yield: 4.7%
52-Week Range: $43.33 – $58.61

Investors willing to look beyond the usual REIT sectors like office, retail and health care can potentially find some hidden gems in specialty sectors. “Our favorite is in the document storage space where industry leader IRM has a very attractive setup for 2023,” Thomas says. This REIT offers secure records storage, shredding and information management services for businesses around the world.

“IRM's legacy document storage business has long been a short-seller target over fears that digitization would make this business obsolete,” Thomas says. “The opposite is playing out as document retention remains important in many regulated businesses and IRM has found its pricing power accelerate in this legacy core business,” he says. IRM currently pays a 4.7% yield.

Stock #3: American Tower Corp. (AMT)

Dividend Yield: 3.2%
52-Week Range: $178.17 – $282.47

Investors looking for infrastructure exposure in a REIT holding might like AMT, which owns and leases telecommunications towers and data centers. The REIT's current portfolio totals 223,000 sites, with 43,000 located in North America and 180,000 internationally. In addition to traditional wireless and broadcast services, AMT has also expanded into 5G.

AMT recently reported its full-year financial results for 2022, which included a 14.5% increase in revenue but also a 33.9% decrease in net income. CEO Tom Bartlett highlighted the REIT's ability to capitalize on its December 2021 acquisition of CoreSite, which at the time significantly expanded AMT's data center services. AMT currently pays a yield of 3.2%.

Bonus Stock: Star Bulk Carriers Corp. (SBLK)

Dividend Yield: 24.96% (As of Jan 1, 2023)
52-Week Range: $16.85 – $33.99

For a bonus, Star Bulk Carriers Corp. specializes in the transportation of bulk cargo worldwide. It's found in the portfolio of 20 hedge funds and could be a massive opportunity for dividend investors.

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