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)
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.
Let's unpack the powerhouse that is Blackstone Mortgage Trust (BXMT) and see why it's a standout in the commercial real estate lending space.
First off, BXMT isn't just operating in the big leagues; it's got the backing of one of the biggest players in the game. Affiliated with Blackstone Real Estate, which manages a hefty $339 billion in investor capital, BXMT taps into an unparalleled network. This connection provides not only vast market knowledge and capital but also stellar relationships across the globe.
Speaking of global reach, BXMT benefits massively from Blackstone's superior sourcing capabilities. With a track record of originating or purchasing over 185 loans in the U.S. and Europe post-financial crisis, BXMT leverages Blackstone’s reputation and proprietary relationships. This means BXMT isn’t just playing the game; it's setting the rules, thanks to Blackstone's rigorous analysis and execution prowess.
Now, let’s talk expertise. BXMT shines with its strong underwriting and structuring capabilities, pulling from Blackstone’s global insights and real estate acumen. This allows BXMT to snag efficiently priced and well-structured financing deals, which is no small feat in the competitive realm of commercial real estate.
Diversity? Check. BXMT boasts a diversified portfolio of senior mortgage loans, all collateralized by prime commercial real estate assets in major markets across North America, Europe, and Australia. With a loan portfolio valued at $21.1 billion as of March 2024, BXMT isn’t just playing in the big leagues; it’s dominating them.
Last but certainly not least, BXMT’s management team is stacked with seasoned pros. With deep roots in real estate and hefty experience from Blackstone and other leading financial institutions, this team is well-equipped to identify lucrative opportunities and partner with top-tier sponsors.
To wrap it up, BXMT’s blend of strategic affiliation with Blackstone, a diversified and robust loan portfolio, sharp financing strategies, and an expert management team positions it as a titan in the commercial real estate lending sector. For investors looking for steady and strong returns, BXMT presents a compelling case.
Stock #2: Iron Mountain Inc. (IRM)
IRM operates on an impressive scale, serving customers in 60 countries, including over 90% of the Fortune 1000. This extensive network not only boosts its market penetration but also amplifies its brand recognition, setting it apart in a crowded field.
Now, let’s talk strategy. IRM isn't just sitting pretty; it’s pushing boundaries with initiatives like Project Matterhorn. This ambitious project, funneling $150 million annually from 2023 to 2025, is all about optimizing services and pivoting to a solution-based sales approach. It's a clear signal that IRM is serious about staying at the top of its game and expanding its market share.
Scale is another massive advantage for IRM. With nearly 500 million cubic feet of records stored across over 67 million square feet of warehouse space, IRM's operations allow it to manage storage costs more efficiently than its peers. This cost advantage isn't just a short-term benefit; it's a sustainable moat that shields IRM from competitors.
Technological innovation is also at the forefront of IRM’s strategy. By leveraging AI and machine learning, IRM enhances its offerings, from automating document categorization to extracting critical information. This not only streamlines operations but significantly improves the customer experience.
Lastly, IRM is making smart moves into emerging markets and developing new services to keep up with the digital transformation. Their well-established global brand and deep industry expertise uniquely position them to tap into new customer segments and address rising data storage demands worldwide.
In summary, IRM's blend of global leadership, strategic growth initiatives, scale efficiencies, advanced technology investments, and proactive expansion into new markets underpin its strong position in the information management industry. For anyone keeping an eye on the sector, IRM is a player you can't ignore.
Stock #3: American Tower Corp. (AMT)
AMT isn’t just playing the game; they're leading it. As one of the largest global REITs, AMT boasts a portfolio of over 220,000 communication sites spread across 25 countries. This immense scale not only allows for significant operational efficiencies but also provides a sturdy platform for sustained growth.
Now, the strategic side of things. AMT's tower locations are nothing short of prime real estate in the communications world. These sites are not only strategically placed but typically have capacity to spare, which means AMT can boost its occupancy and returns by adding more tenants to these existing structures. This capability is a clear competitive edge, allowing AMT to maximize the profitability of each tower.
Talking about expansion, AMT is all about smart growth. With a solid financial foundation, AMT continuously seeks out opportunities to enlarge its footprint through savvy investments and strategic acquisitions. This proactive growth strategy ensures that they don’t just keep up with global demand but often stay one step ahead.
Profitability? AMT has it in spades. With an average reported profit margin of around 85% on its cell towers, the numbers speak volumes about the efficiency and cash-generating prowess of its business model.
Lastly, no company climbs to the top without a sharp focus on operational efficiency and stellar customer service. AMT excels here by streamlining processes, like cutting down lease processing times and integrating renewable power solutions, all while maintaining a direct line of communication with both stockholders and customers.
In summary, AMT's dominance in the communications real estate market is built on a foundation of global reach, strategically located towers with room for growth, financial robustness, exceptional profit margins, and a relentless drive for operational excellence and customer satisfaction.
Before you invest in BXMT, IRM, or AMT, you should read this…
More MLP Checks Are Set to Go Out July 2nd
Sponsored
Thirty oil companies have been legally approved to payout $17.9 billion in the form of “MLP checks” this year…
The next round of checks is expected to go around July 2nd .
And you have an opportunity to collect three of them.
