So Much For A Soft Landing, 3 Dividend Stocks For Passive Income To Help Weather A Recession

As the threat of high inflation and rising interest rates looms into 2023, investors are turning to the top recession-proof stocks that can withstand a potential downturn. These include dividend stocks with pricing power, low debt, and essential products that generate steady cash flow.

Here are three stocks that could be worth considering.

Flowers Foods Inc FLO is the second-largest producer of packaged bakery foods in the U.S. During the 2008 financial crisis, Flowers' sales declined just 2.6%, thanks to its essential product offerings.

Flowers has around 70% market share in organic fresh packaged bread, positioning it well for consumers' shifting preferences for healthier, more natural foods.

Second on the list is Magellan Midstream Partners LP MMP, which operates refined product pipelines and terminals that transport gasoline and other fuels from refineries to end-users.

The company's stable fees reflect the non-discretionary nature of most transportation fuels, and contracts with minimum volume provisions back most of Magellan's oil pipelines. Further, 30% of the firm's refined products markets charge regulated tariff rates that track the producer price index for finished goods.

Finally, WEC Energy Group Inc WEC is one of the nation's biggest utilities, with electric and natural gas activities in Wisconsin, Illinois, Michigan and Minnesota.

As regulated utilities, the company enjoys a lack of competition in its service territories, reasonable returns on capital investments it's allowed to earn by regulators, and the non-discretionary nature of its services.

Although these stocks have their unique advantages and are considered recession-proof, real estate is perhaps the most reliable source of passive income for investors, and new companies backed by the likes of Jeff Bezos have made it possible.

Here’s how to get involved in the real-estate market by buying individual shares of rental properties across the U.S. for as little as $100 (or more, depending on your appetite).

This company pays out quarterly dividends and is currently expanding its selection of homes to invest in.

Looking for a way to boost returns? Benzinga’s Real Estate Offering Screener has the latest private market investments with offerings available for both accredited and non-accredited investors. 

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