Dividend stocks are one of the easiest paths to passive income. You just have to buy equities, hold onto them, monitor them from time to time, and get paid. It’s an easier setup than a rental property portfolio, but you have to be careful about which dividend stocks you pick.

Some dividend stocks look tempting because of their high yields but don’t offer enticing returns for long-term investors. Other dividends have lower yields but offer more upside because of the corporation’s growth opportunities.

Looking at Wall Street’s top picks can help with research. These are some of the dividend stocks they’re raving about now.

Watsco (WSO)

Watsco (NYSE:WSO) is a relatively lesser-known stock that has generated meaningful returns for shareholders. The firm makes the bulk of its revenue from HVAC equipment and products. The remaining 4% of its revenue comes from commercial refrigeration products. 

Strong demand for HVAC equipment has helped the company give out dividends for 50 consecutive years while maintaining double-digit year-over-year dividend growth rates. Watsco estimates that over 350,000 contractors and technicians visit or call one of its nearly 700 locations each year for information and support. 

Watsco delivered 4% year-over-year revenue growth in the third quarter of 2023 while increasing net income by 8% year-over-year. The stock currently offers investors a 2.50% dividend yield and a 26 P/E ratio. Shares have gained 41% over the past year and are up by 164% over the past five years.

Lower interest rates can help this stock march higher as homeowners have more room in their budgets for new HVAC equipment. Analysts forecast the stock to rise by 13%, making this one of the dividend stocks worth following, making this one of the dividend stocks worth your consideration.

LVMH (LVMUY)

Luxury brands like LVMH (OTCMKTS:LVMUY) continue to attract customers who have the resources to afford high-end products. LVMH is the holding company for Louis Vuitton, Berluti, Loewe, Moynat, and other brands.

Although shares are down by 9% over the past year, the stock has surged by 141% over the past five years. The corporation offers a 1.75% dividend yield for its investors. 

LVMH delivered 13% year-over-year revenue growth in 2023 which included 10% year-over-year revenue growth in Q4 2023. Europe, Japan, and the rest of Asia all experienced double-digit year-over-year revenue growth rates. 

The company’s top segment was Selective Retailing which grew by 25% year-over-year on a constant currency basis. Wines & Spirits was the only segment that experienced a year-over-year revenue decline. The decline came to 4% year-over-year on a constant currency basis.

LVMH also delivered an 8% year-over-year increase in net profits. LVMH delivered double-digit revenue growth under the context of economic and geopolitical challenges. There is enough demand for the corporation’s luxury brands to generate growth in a challenging economy. 

Mid-America Apartment Communities (MAA)

Mid-America Apartment Communities (NYSE:MAA) is a real estate investment trust that prioritizes properties in the southeastern and southwestern United States.

Shares are down by 19% over the past year but have gained 31% over the past five years. MAA stock currently offers an elevated 4.50% dividend yield and analysts give it a 6% upside.

The REIT continued to raise its dividend and bumped its payouts up by 5% year-over-year. Investors now receive a quarterly distribution of $1.47 per share. It’s the 14th consecutive year Mid-America Apartment Communities increased its dividend.

Funds from operations took a slight decrease in the third quarter of 2023, going from $2.19 per share to $2.16 per share. However, this important metric for REITs is up over the nine months ended September 30. 

The firm is working on several developments and acquiring multifamily complexes to ignite more growth. MAA has five communities under development and will have an additional 1,970 units available once those communities are completed.

The firm also recently acquired a 323-unit multifamily community in Phoenix, Arizona. 

MAA is a vast real estate conglomerate with over 100,000 apartment units in its portfolio. That results in high cash flow which allows the firm to offer a high yield.

Costco (COST)

Costco (NASDAQ:COST) is rated as a “Strong Buy” among 28 analysts. While the average price target suggests a limited upside, new price targets are arriving at levels as high as $755. This high price target suggests a 10% upside.

Costco attracts consumers who are looking for a good deal. The wholesaler offers lower prices for its members.

Membership is required to get into a Costco warehouse. Consumers can choose between a $60/yr membership or a $120/yr membership, each with their different perks. 

Costco’s December Sales Results indicate rising demand for its offerings across North America and international markets. E-commerce has been on a tear and achieved a double-digit year-over-year growth rate for 5-week and 17-week periods.

Costco recently announced its $1.02/share dividend. It’s the fourth quarter Costco has offered this dividend rate, so the firm is likely to increase its dividend in the following quarter. Costco operates 872 warehouses with a heavy concentration in North America. The company’s vast digital footprint and ability to offer affordable goods make the corporation among the perennial dividend stocks to seriously consider.

JPMorgan (JPM)

JPMorgan (NYSE:JPM) is arguably the most reliable big bank stock. Shares have gained 24% over the past year and are up by 66% over the past five years. The firm offers a 2.45% dividend yield and trades at an 11 P/E ratio. 

JPMorgan released Q4 2023 results that showcased 7% year-over-year net revenue growth excluding First Republic.

The firm reported $9.3 billion in net income which was down 21% year-over-year excluding First Republic. The bank said that the FDIC special assessment was the primary factor that contributed to the decline.

The home lending division was the biggest winner in the quarter with demand almost doubling year-over-year. JPMorgan can generate more profits from this segment as the Federal Reserve begins to reduce interest rates.

Many analysts are feeling bullish about JPMorgan. The bank stock has a “Moderate Buy” rating from 22 analysts. The average price target of $189.60 presents a 10% upside from the current price.

Digital Realty Trust (DLR)

Digital Realty Trust (NYSE:DLR) is a data center REIT that has seen heightened demand as more businesses embrace artificial intelligence.

The company believes artificial intelligence will drive the next wave of demand for data centers, and investors are on board too. DLR stock has gained 30% over the past year and has a 3.40% dividend yield.

The stock is rated as a “Moderate Buy” on TipRanks, but the recent rally has resulted in the share price being above the average price target. However, the highest price target of $170 suggests a 20% upside.

The company reported exceptional net income growth in the third quarter of 2023. Net income available to shareholders reached $2.33 per share compared to $0.75 per share in the same period last year. Funds from operations per share stayed flat. Revenue jumped by 18% year-over-year to reach $1.4 billion.

Digital Realty Trust has a healthy balance sheet where its total assets are almost twice as high as its total liabilities. The REIT has a high 4.3x interest coverage ratio which means it can comfortably cover debt payments. The ratio means that Digital Realty Trust generates enough operating profits to make its interest payments 4.3 times.

Visa (V)

Visa (NYSE:V) is the top credit and debit card stock based on market cap. Shares have gained 95% over the past five years and are up by 21% over the past year.

The company has a low dividend yield but makes up for it with significant dividend appreciation.

Visa closed out 2023 by raising its quarterly dividend per share from $0.45 to $0.52. That represents a 15.6% year-over-year increase. A net profit margin above 50% and the sticky demand for credit and debit cards suggest these high dividend payout bumps can continue for several years. 

Visa reported earnings for the first quarter of fiscal 2024. The report highlights Visa’s 9% year-over-year revenue growth and 17% year-over-year GAAP net income growth. Since Visa has been buying back shares, GAAP EPS has gone up by 20% year-over-year. The three percentage point gap between net income and EPS growth rates shows the impact of stock buybacks.

Visa CEO Ryan McInerney mentioned that consumer spending remains resilient and expressed optimism about how fiscal 2024 started. Visa’s leadership is confident in the corporation’s future, and its financials back the CEO’s sentiment.

On the date of publication, Marc Guberti did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.