Seeking at Least 8% Dividend Yield? Analysts Suggest 2 Dividend Stocks to Buy

With gasoline prices through the roof at record highs, inflation running at 40-year record levels, and last year’s bullish stock market turn down into a genuine bear, it’s no wonder that the financial and economic worlds are looking like reruns of ‘That 70s Show.’ Market watchers remember that the bad times of the late 70s and early 80s were tamed only when Fed Chair Paul Volker sparked a recession with near-20% interest rates – and for investors under 45, just take note that Q1 this year saw a 1.5% GDP contraction. Should Q2 show the same, it would mean that a recession is already on us.

The debate so far centers on just how deep the next recession will likely be and exactly when it will begin. For now, the consensus would seem to be that a mild recession in headed our way, along with higher interest rates, likely by year’s end.

Writing for Morgan Stanley, however, chief US equity strategist Mike Wilson takes a much more bearish stance, predicting a deeper and more dangerous recession than most would allow. Noting that the current turndown has left the S&P ‘more fairly priced,’ Wilson goes on to say, “It does not price the risk of a recession, in our view, which is 15-20% lower, or roughly 3000. The Bear market will not be over until recession arrives or the risk of one is extinguished.”

A market environment like this practically screams out for investors to take defensive action – and that will naturally get them looking at dividend stocks. Reliable, high-yield div payers will provide a steady income stream, guaranteeing a return even when stock markets turn down, and even if the bear market is deeper than expected.

With this in mind, we’ve used the TipRanks database to pinpoint two stocks that match a solid defensive profile: a Strong Buy from the analyst’s collective wisdom and a dividend yield of 8% or more. Let’s take a closer look.

Starwood Property (STWD)

We’ll start with a real estate investment trust, or REIT, a class of company long known for their high-yield dividend payments. Starwood Property, which has offices in New York and…

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