Costco(US:COST) InvestorPlace·2024-02-01 11:20Dividend Stocks Overview - Dividend stocks provide a straightforward path to passive income, requiring investors to buy, hold, and monitor equities while receiving payments [1] - High-yield dividend stocks may not always offer long-term returns, while lower-yield stocks with growth potential can be more attractive [1] - Wall Street's top dividend stock picks are highlighted as potential investment opportunities [1] Watsco (WSO) - Watsco generates most of its revenue from HVAC equipment, with 4% from commercial refrigeration products [2] - The company has paid dividends for 50 consecutive years with double-digit YoY dividend growth [2] - Watsco reported 4% YoY revenue growth and 8% YoY net income growth in Q3 2023, with a 2.50% dividend yield and 26 P/E ratio [2] - Shares have gained 41% over the past year and 164% over the past five years [2] - Lower interest rates could boost demand for HVAC equipment, with analysts forecasting a 13% stock price increase [3] LVMH (LVMUY) - LVMH owns luxury brands like Louis Vuitton and has seen a 141% stock increase over the past five years despite a 9% decline in the past year [4][5] - The company offers a 1.75% dividend yield and reported 13% YoY revenue growth in 2023, including 10% growth in Q4 2023 [5] - Selective Retailing grew 25% YoY, while Wines & Spirits declined 4% YoY [5] - Net profits increased 8% YoY, driven by strong demand for luxury brands despite economic challenges [5] Mid-America Apartment Communities (MAA) - MAA is a REIT focused on properties in the southeastern and southwestern US, offering a 4.50% dividend yield [6] - Shares are down 19% over the past year but up 31% over five years, with analysts predicting a 6% upside [6] - The company raised its dividend for the 14th consecutive year, with a 5% YoY increase to $1.47 per share [6] - Funds from operations slightly decreased in Q3 2023 but are up over the nine months ended September 30 [6] - MAA is developing five communities and acquired a 323-unit complex in Phoenix, with over 100,000 apartment units in its portfolio [7] Costco (COST) - Costco is rated a "Strong Buy" by 28 analysts, with a potential 10% upside to a $755 price target [8] - The company reported strong December sales, with double-digit YoY e-commerce growth [8] - Costco announced a $1.02/share dividend, likely to increase in the next quarter, and operates 872 warehouses globally [9] JPMorgan (JPM) - JPMorgan shares have gained 24% over the past year and 66% over five years, with a 2.45% dividend yield and 11 P/E ratio [10] - Q4 2023 results showed 7% YoY net revenue growth (excluding First Republic) and $9.3 billion in net income, down 21% YoY due to FDIC assessments [10] - The home lending division saw demand almost double YoY, with potential for higher profits as interest rates decline [10] - Analysts rate JPMorgan as a "Moderate Buy," with a 10% upside to the $189.60 average price target [11] Digital Realty Trust (DLR) - DLR is a data center REIT benefiting from AI-driven demand, with a 30% stock increase over the past year and a 3.40% dividend yield [12] - Q3 2023 net income reached $2.33/share, up from $0.75/share YoY, with 18% YoY revenue growth to $1.4 billion [12] - The company has a strong balance sheet, with total assets nearly double liabilities and a 4.3x interest coverage ratio [13] Visa (V) - Visa shares have gained 95% over five years and 21% over the past year, with a low dividend yield but significant dividend appreciation [14] - The company raised its quarterly dividend by 15.6% YoY to $0.52/share, supported by a net profit margin above 50% [14] - Q1 fiscal 2024 results showed 9% YoY revenue growth, 17% YoY GAAP net income growth, and 20% YoY GAAP EPS growth due to stock buybacks [14] - Visa's CEO expressed optimism about consumer spending resilience and the company's future growth [15]