hi I'm Jimmy in this video I'm gonna walk through my top three dividend
stocks from the information technology sector that could help diversify our
investments and give us the passive income that could help each of us get
closer to our goal of financial independence now when I was picking
these stocks I focused on a few different things first obviously we want
good dividends ideally dividends that have steadily
increased over the past few years and also looked like they're going to
continue to increase then I tried to look for companies that could afford to
pay their current dividends and their anticipated dividends so I was searching
for companies that had good dividend coverage then finally I tried to focus
on companies that seem to have solid business plans going out at least the
next couple of years now this video is part of a new passive income from
dividends series where we're trying to put together the top three dividend
stocks from each of the 11 global investment classification standards or
they call that gigs for short they're basically ways to group companies and
what we're gonna do is we're gonna focus on first information technology and then
we're gonna jump over to all the other companies going right down the line
so if you know any companies that you think are great dividend stocks from
this sector please put them in the comments below and don't forget to hit
the subscribe button and hit the bell icon it really helps the video really
helps the channel so if you could jump down there and do that okay now let's
get started so the first dividend paying stocks from the IT sector is actually a
company I've talked about in the past and that's Corning ticker symbol GLW so
Corning has a dividend yield of slightly more than two and a half percent and
when we look at revenue we could see revenue going back to about 2012 it's
had some decent growth and with that decent revenue growth we could see that
earnings per share has also grown at a decent pace earnings per share is
another way to say profit per share so you take the earnings per share you
compare that to the dividend per share and that gives us the dividend coverage
ratio I mentioned a second ago we want the profits to be greater than the
dividends okay so what is it that Corning does that we like from a
business perspective well there's a few things that they do that I think
looks promising for the next couple years first they produce fiber-optic
cable and this is going to be key for the next generation of cell phone
technology which is 5g they also make a gorilla glass which you may have heard
of they they're popular on a lot of smartphones today they also make LCD
screens which is used in computer monitors televisions things like that
they also do they make some kitchenware and they do lab products so clearly many
of their products seem like they have some staying power and when we jump over
to their dividends per share well here difference per share over the past few
years have grown fairly nicely so overall I think that Corning is a fairly
solid business that is likely to keep growing at least in the near future over
the next couple years and I would expect to expect for them to continuously
increase their dividends the green bars are analyst estimates and it seems that
analysts are also expecting dividend increases and I think that this could go
a long way to helping diversify our portfolio and provide us with some of
the passive income that dividends offer many investors okay the next company on
our IT dividend stock list is Cisco ticker symbol C SCO
now Cisco's best known for their networking products they sell products
like routers or switchers or servers things along those lines they also some
sell some software now when we look at Cisco's revenue we could see that
revenue has done fairly decent they've been growing pretty good at a pretty
good twenty nineteen that just ended for them back in July and we can see that
according to the green bars analysts are expecting revenues to continue to climb
over the next couple years when we switch over to earnings per share or
profits per share well there we can see a very similar story in 2019 it had
decent growth and it seems like according to analyst estimates it looks
like it will continue to grow keep growing then when we switch over the
good stuff did it in first share well here we can see that dividends have been
climbing fairly nicely and fairly consistently on an annual basis right
now they have a dividend yield of slightly less than three
I think it's like 2.9 percent give or take as of the time of this recording
and based on the current trajectory of the business in general and the internet
and how many products each individual is using I would expect for their business
to remain fairly popular over the next couple years so I think that's a good
addition okay next up we have the Sabre corporation ticker symbol SABR now Sabre
is a bit smaller than the other two companies I just mentioned they're worth
about six billion dollars on the stock market they call that the market cap if
we compare that to a company like Cisco well they're worth about two hundred
billion and a company like Corning well they're worth about twenty-three billion
so what does Sabre do well they're the technology behind many of the hotels and
car rental and airline websites that I'm sure many of us have either used or seen
advertisements for basically it have you ever wondered how all of these companies
I know I have have wondered how all these companies have access to so many
different hotel rooms or things like that often Sabre or a company like them
is the group behind them the other group providing the technology now as you can
imagine booking vacations and things like that online are likely to continue
to grow and at least a reasonable pace which partially helps explain their
decent revenue growth and then when we switch over to earnings per share well
although it's a bit more volatile and there's a dip in 2019 compared to 2018
well I would expect for the online booking business to continue to grow and
overall I would expect for their dividend at the end of the day to keep
pushing things forward as more and more things move online now I don't know if
it's necessarily the case that this sector will grow as perhaps some other
grow as quickly as some other sectors in the technology field but I do think that
they're about two and a half percent dividend yield is fairly safe when we
compare it to that I would expect for them to be a fairly steady company
that's one of the reasons I like them for this top three list is that I would
expect for them to grow fairly steadily so in my mind this can this company
could be a solid contributor to a folio of divin paying stocks then that
can ultimately help provide the passive income that we need from our dividend
stocks to achieve the financial independence that many of us are after
and then up next in this series we're going to do the top three dividend
stocks from the material sector and they're gonna go right down the line
through each of the sectors until ultimately we have about 33 companies
that could be great additions for passive income to our dividend portfolio
now if you're not too comfortable with dividends in general how dividends work
well this video right here it's called the truth about dividends well this
video is probably the next best one to watch because that video will really
walk you through the nuances of how a dividend stock and a dividend portfolio
will work so you haven't done so yet hit the thumbs up hit the subscribe button
hit the bell icon to get notifications thanks so much for stick with me all the
way the end of the video I'll see in the next video thanks