Hi, I'm Jimmy in this video,
I'm going to walk through my top
three dividend stocks from the
industrial sector.
Our goal is to find
the best dividend stocks from each
sector that can give us the passive
income that could help us get closer
to our goal of achieving financial
independence.
Now.
Back by popular demand in this
video, we're now doing our top three
European stocks and top three U.S.
stocks. And stick around to the end
of the video, because at the end,
I've actually got two bonus dividend
stocks that almost made this
list. So I guess it's really a top
three top six list plus
two bonus stocks.
Okay. Now, this video is part of a
passive income dividend series
where we're trying to put together
the top dividend stocks from each
of the 11 GICS sectors.
GICS is short for global industry
classification standards.
This is the third video in this
series. You can find a link to all
the other videos in the description
below. So to make this list,
while a company needs to show
a history of good dividends, they
need to keep their dividend above
2 percent.
Or it has to be above currently
above 2 percent.
And ideally they have
to have at least the potential to
grow or at least maintain
their dividend or using the
dividend coverage ratio to
prove whether or not they can afford
their current dividend level to
calculate the dividend coverage
ratio. We simply take profits
of the company. Divide that by the
dividends that they're paying.
The result is a dividend coverage
ratio. So the higher the
profits are or the earnings per
share, well, the higher the
different coverage ratio would be.
Ideally anything it has to be
over one. That means if they're
covering a hundred percent of their
dividend, everything higher than
that is, you know, good for the
company. Okay.
So our first U.S.
dividend stock is the United Parcel
Service ticker symbol, UPS.
U.P.S. has a dividend yield of
slightly over 3 percent.
And what they do is they deliver
documents and packages using both
ground and air delivery services.
Now, this is what their dividends
per share look like going back to
2012.
And as we could see, their dividend
has grown nicely over the past few
years. And analysts are expecting
for UPS. its dividend to continue
to climb in the coming years.
The green bars, our analyst
estimates.
And when we add earnings per share
to this mix, well, we can see that
earnings per share, which is the
same thing as profit.
Well, we can see that profit per
share has more than
adequately covered the dividend
per share, which is likely a good
sign for the stability of
UPS is dividend.
Okay. Now we jump over to Europe, to
the Paris Exchange, where we have a
construction and engineering company
called Vinci Ticker Symbol
DG.
Now, they are one of the
powerhouses when
it comes to the construction and
engineering space.
They built the tunnel from the U.K.
to France and I believe Vinci built
the law the world's longest
suspension bridge.
So there is supposed to be quite
good at what they do.
Now, if we look at their dividends,
once again, they look quite stable.
And as we add earnings per share to
this whole thing, well, we can see
that earnings per share are
doing a good job of covering
their dividend per share.
And it looks like earnings is
growing fast enough that I would
expect to see decent
increases in Venture's
dividend over the coming years.
So I would expect for their two and
a half percent or so dividend yield
to be fairly stable over the next
couple of years.
Okay. Now we jump back to the US.
So our next dividend stock is
Illinois talk ticker symbol
ITW. ITW has a dividend yield of
almost two and a half percent.
And basically what they do is
they design and manufacture
fasteners, equipment, adhesives,
tools, specialty products,
things along those lines.
And when we look at their dividends,
well, we can see that their dividend
per share has been fairly consistent
and their hit their outlook
also looks like it will continue to
be fairly consistent when we add
earnings per share to this.
Once again, we can see a very
similar story.
So overall, I'm a big fan of
Illinois tool works its dividend
and I expect for them to remain
fairly strong over the next few
years. OK.
Next, we head back to London or we
head over to London where we have
Babcock International Ticker symbol
BAB.
Now, baby has a dividend yield
of more than five and a half
percent.
And as we could see, both their
dividends.
And then when we add earnings per
share to this, well, both
looked fairly stable.
And we could see that profits do a
good job of covering dividends,
which is likely a sign that
Babcock's dividend will remain
fairly stable over the coming years.
Now, what Babcock does is
a focus on three different places.
They have the defense, which is
when the military buys things from
them, then they have emergency
services, which is when places
like firefighters, things like that
buy different things from them.
And then they have their civil
nuclear division, which
they're decommissioning some nuclear
power plants. I believe they're
building a new one.
They offer operational supports
to some other ones.
So I believe they have a lot going
on in that area on
sort of every aspect of nuclear.
So overall, I would expect their
business to do quite.
Well, over the long run, and I would
expect for many of the revenue
streams to remain fairly
sticky as many of
their customers are likely to stick
with them for a long time.
Okay. Now we jump back to the US
where we have the Eaton Corp ticker
symbol ETN and Eaton
has a current dividend yield of
slightly more than 3 percent.
And what Eaton does is they
manufacture products in the
industrial, construction, commercial
and aerospace markets.
And when we check out their
dividends.
Well, here we can see that
dividends have been quite good over
the past few years.
We add earnings per share to this or
we can see that.
Overall, it seems that earnings per
share are more than capable of
continuing to cover their dividend.
And I would also guess thanks is
stability of much of the revenue
that I would expect for their
dividend per share to continue
to climb, at least for the
foreseeable future.
OK. Next up, we jump back
to London for our final stock
and then we're gonna touch on our
two bonus dividend stocks that
almost made this list.
Next up, we have Bumble Ticker,
symbol BNZL.
BNZL has a dividend yield of just
short of two and a half percent.
And while Bundesliga does is,
they sell products to businesses
that aren't typically sold
by those businesses.
So as an example, they're one of the
largest sellers of
the one of the largest sellers in
the world of plastic and paper
bags.
That many stores use.
So if you were to go to a grocery
store and you get plastic bags at
the end or when you're checking out
or paper bags, bundles likely
to be the seller of those bags.
When we look at their dividend per
share, what we can see that they've
been climbing fairly nicely over the
past few years.
Then we had earnings per share to
this and we could see that the
dividends appear to be fairly
safe. And I would expect them to at
least be able to maintain their
current dividend level, possibly
increase.
Okay. Now for the two bonus dividend
stocks that I wanted to include,
but kept them out for one reason or
another. The first one is
waste management ticker symbol
WM.
Now, I'm actually a big fan of waste
management. And if you've been
following the channel for a while,
I've mentioned it once or twice in
the past and I would have included
in this list.
But right now they're definitely at
the slightly below 2 percent,
which is what I was limiting my
search to. I was hoping they were
gonna make this list, but because
the dividend was below 2 percent, we
kept them off.
Then I considered adding Boeing
to this whole thing.
Now I've done a few videos on Boeing
in the past and over the long
run I would expect for Boeing stock
to do very well.
I like their dividend per share
and the reason I kept them off this
list is if you look at their
earnings and dividend chart, well,
we can see that earnings per share
has dipped lower in 2019
and this sort of violated
the the initial setup
that we had for this list
of finding stocks that had good
dividend coverage ratios.
They I expect them to have good
dividend coverage next year and
possibly the year is going forward.
But this year they sort of violate
it. So I kept it off now for nervous
about a stock market crash.
I actually did a study where I
looked through the S&P 500
stocks over the past few recessions
to see which companies perform the
best. So if you're curious
to find dividend stocks
that have performed well in market
crashes, this is a good next
video that you might be interested
in watching. There's a link here.
There's a link in the description
below.
So thank you so much for stick
with me all the way into the video.
I really appreciate it.
Don't forget to eat the thumbs up
and the subscribe button.
Thank you. I'll see in the next
video.