Top 3 Industrial Dividend Stocks for Passive Income - Industrial Dividend Stocks for 2020

TL;DR

Analyzing top dividend stocks from the industrial sector in U.S. and Europe, with bonus picks and criteria explained.

Transcript

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 ou... Read More

Key Insights

• 👋 Dividend stocks from the industrial sector in the U.S. and Europe are analyzed for their history of good dividends and potential for growth.
• 🥳 Criteria such as dividend yield above 2 percent and strong dividend coverage ratios are essential for stock selection.
• 🥳 Bonus picks Waste Management and Boeing are considered but excluded due to specific concerns regarding dividend yield or coverage ratios.

Questions & Answers

Q: What criteria does Jimmy use to select dividend stocks in the industrial sector?

Jimmy looks for companies with a history of good dividends, a dividend yield above 2 percent, and strong dividend coverage ratios.

Q: Why were Waste Management and Boeing excluded from the list of top dividend stocks?

Waste Management was excluded due to its dividend yield being slightly below 2 percent, while Boeing did not meet the criteria of maintaining a strong dividend coverage ratio in 2019.

Q: What potential does Jimmy see for the dividend growth of the selected European stocks?

Jimmy expects Vinci and Babcock to have stable dividend yields over the coming years, with the potential for decent increases based on their earnings per share performance.

Q: How does Jimmy determine the stability of a company's dividend based on earnings per share?

Jimmy assesses the dividend coverage ratio by dividing the company's profits by the dividends paid, aiming for a ratio above one to ensure that the dividend is adequately covered by earnings.

Summary & Key Takeaways

• Jimmy reviews top dividend stocks from the industrial sector in the U.S. and Europe, highlighting UPS, Vinci, ITW, Babcock, Eaton, and BNZL.

• Criteria for stock selection include a history of good dividends, dividend yield above 2 percent, and strong dividend coverage ratios.

• Bonus picks Waste Management and Boeing are considered but excluded due to dividend yield or coverage ratio concerns.