A Recession Won't Slow Down This Dynamic Dividend Stock
Several leading indicators of recessions are flashing warning signs these days, and many investors are growing increasingly concerned. A recession could negatively impact corporate earnings, likely putting even more downward pressure on stock prices.
However, some companies with durable businesses that benefit from dynamic growth drivers are relatively immune to the economic cycle. Real estate logistics giant Prologis (NYSE: PLD) looks to be one of them. While demand for warehouse space tends to fall during recessions, a combination of catalysts has positioned this REIT to continue growing its earnings and dividend at a healthy pace in 2023 and beyond, even if a recession occurs.
The pandemic has had a lasting impact on the industrial real estate market. It accelerated the adoption of e-commerce and led companies to adjust their inventory management practices to combat persistent supply chain issues. These catalysts have driven increased demand for warehouse space around the world. Because of that, vacancy levels are at record lows, and rental rates on available space have skyrocketed.
Source Fool.com
