3 Dividend Stocks I'd Buy Without Hesitation in 2023

2023 is off to a strong start with the S&P 500 gaining 6.2% and the Nasdaq Composite jumping 10.7% so far in January. Some experts predict this is the start of a bull rally, while others worry a recession is coming in 2023. Both could technically happen this year and neither could occur. No one knows what's truly in store for the market this year.

Rather than sitting on the sidelines and waiting things out while experts predict where the market could be moving, I'm investing in high-growth dividend stocks that should perform admirably in an up or a down economy. I purchased shares of these three companies at the end of 2022 and they are stocks I'd buy without hesitation in 2023.

1. Blackstone

It's no secret I've been incredibly bullish on alternative asset management company Blackstone (BX -0.43%). The stock was crushed last year as investors grew wary that demand for its asset management services was slipping. But its latest fourth-quarter and full-year 2022 earnings report allayed much of that concern.

Fee-related earnings and revenue remain up from last year, and its assets under management (AUM) are nearing $1 trillion. The company saw tremendous year-over-year growth since 2020 thanks to a growing demand for alternative assets in a challenging economy. This is demand I don't see slowing any time soon.

Blackstone manages money for high-net-worth individuals, large investment firms, and insurance companies putting their money to work in things like renewable energy, life sciences, real estate, debt equities, and agritech, along with other things. These unique investments are often out of reach for many due to high barriers of entry and the complexity of investing, making Blackstone's services in high demand.

Its management skills have been proven over the last 15 years; it's not only survived the Great Recession but come out a much stronger company. It's in an incredibly healthy financial position with ample coverage for its very attractive 3.6% dividend yield. 

2. Prologis

Prologis (PLD -1.57%) is the largest real estate investment trust (REIT) by market capitalization and the largest industrial operator in the world. At the end of 2022, the company owned or had an interest in over 1.2 billion square feet of warehouses, manufacturing buildings, third-party logistics facilities, or last-mile distribution centers.

Being such a massive company can make growth challenging. But Prologis has proven it still has plenty of room and funds to keep expanding. In 2022 it completed the acquisition of REIT Duke Realty, which will be accretive to the company starting in 2023. Even without Duke Realty's contributions, Prologis' fourth-quarter and full-year 2022 earnings were incredibly strong. High demand for industrial properties helped the company maintain 98% occupancy and grow its net effective rents by 50% since last year.

The company is expecting its growth to return to more normalized levels in the coming years, but that still equates to a projected 9% to 10% year-over-year increase in funds from operations (FFO), a key indicator of REIT profitability. Like Blackstone, 2022 was unforgiving to the company, with its share price falling by 16%. Its yield sits near 2.5%, which is slightly above its historical average.

3. Iron Mountain

While most other stocks fell steeply in 2022, Iron Mountain (IRM 2.08%) finished out the year effectively flat (down about 4%). It's up nicely (about 10%) so far in 2023. Iron Mountain's outpaced growth is attributed to a few things. For starters, it's the leading provider of a niche but necessity-based business. Second, it's seeing robust demand for its services and has long-term growth opportunities.

The REIT owns industrial buildings and data center facilities helping store and organize physical and digital assets ranging from documents, files, art, and collectibles for over 225,000 customers. Its fourth-quarter and full-year earnings haven't been released yet, but its performance through the third quarter of 2022 is promising. Earnings before interest, taxes, depreciation, and amortization (EBITDA) is up 18% since last year. Revenue, net income, and FFO, all of which are illustrative of a REIT's profitability, are up consistently year over year.

Its recent acquisitions of data center facilities over the last few years coupled with healthy demand for data center leasing are helping boost its earnings. While there was a concern that data center demand was wavering, its earnings aren't showing signs of slowing. The company has outlined a lofty five-year goal it's calling "Project Matterhorn," which aims for a compounded annual growth rate (CAGR) for all key REIT metrics in the 7% to 10% range.

This would be an impressive accomplishment if achieved, and while there is no way of truly knowing if Iron Mountain will get there, it does seem likely given its recent performance. The company does have higher debt ratios than I'd like to see, especially considering it pays a very attractive and high dividend yield of 5%. But it's paying down a lot of its debt right now, which is a move in the right direction.

Long term, I see Iron Mountain continuing to perform well, benefiting from its niche business in a high-demand industry.