Top 3 IT Dividend Stocks for Passive Income – IT Dividend Stocks for 2020


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

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