It seems as though we’ve pushed back recession fears slightly by a few months, according to economists. Last year, they expected an official recession by late 2022, or early 2023, in the first quarter. But now, economists have changed their minds.
It could be mid-2023 when we see a “moderate” recession, according to experts. That means now is a great time to prepare. Before the end of March, we’ll see quarterly results come in for most companies on the TSX today. Therefore, you should be able to identify some companies that are worth your time during a recession, and others that may not be.
Today, I’m going to focus on dividend stocks. Those you will want to buy before the end of March, and even before earnings come out when you could see shares rise higher, preventing you from getting a deal.
NorthWest REIT
NorthWest Healthcare Properties REIT (TSX:NWH.UN) earnings will come out on Mar. 31. This is certainly a company I would grab onto before earnings come in and send the company potentially moving higher.
NorthWest stock is a solid long-term buy that remains in value territory, trading at just 7.7 times earnings as of writing. Shares are down 38% in the last year alone, reaching 52-week lows in recent days. This, however, means you can bring in an incredibly high dividend yield at 8.91% as of writing.
Why buy this among dividend stocks? NorthWest stock is a strong long-term buy. Even with high interest rates and inflation, it’s a solid company given its focus on healthcare properties. So I would certainly consider it before earnings come out March 31.
Constellation Software
Another strong choice for both long-term growth and income is Constellation Software (TSX: CSU). True, the dividend yield is small at 0.23%. However, that comes to $5.37 per share annually, so it adds up if you make a larger investment and hold long term.
And that’s exactly what I would do, with earnings coming out March 29. The company should continue to see stable growth to add to the high 1,783% in the last decade. It simply has a strong investment strategy, acquiring smaller software companies and providing them with what they need to succeed. Then, collecting the profits.
Constellation stock might not be what you think of when it comes to dividend stocks, but it should be. It’s also a solid long-term tech stock you won’t regret owning before the end of March.
Inovalis REIT
Finally, if you want some serious passive income, even if for a short period, it might be a good time to consider Inovalis REIT (TSX: INO.UN) among your dividend stocks. The REIT offers a substantial 11.06% dividend yield, translating to $0.41 per share annually.
Now this, of course, means shares are super cheap at $3.62. What’s more, it invests on a global scale, mostly in Germany and France, providing diverse revenue outside Canada that investors can lock into.
Now I’ll grant you, this might be the riskiest of options given shares are down 62% in the last year. But if you’re in to collect cash from dividend stocks, you could be buying at the best opportunity. A year from now, your shares may zoom to what they once were, providing substantial returns and income in the meantime.
