Hi, I’m Jimmy in this video, I’m going to walk through my top three dividend stocks from the materials sector that could help give us the passive income that could help us get to towards our goal of financial independence. Now, since this is a global platform and diversifying our portfolio with dividend stocks from other countries could be helpful to almost all of our portfolios. Well, I thought it makes sense to include three dividend stocks from the US and three dividend stocks from Europe to help get more opportunity or more options in there for each of us to go out and research. Now, this video is part of a new passive income from dividend series where we’re putting together the top three dividend stocks from each of the 11 Global Investment Classification Standards. This video focuses on the material sector and then we’re gonna go right down the line cover in each of them. Now, in this particular video, like I mentioned, we’re testing out adding three European stocks. Let me know in the comments below if you think that’s a good idea. Should we go further with that or just leave it with us stocks? Please let me know what you think of the comments below. OK. So to make this list, obviously we want to stocks that paid good dividends, ideally dividends that have the potential to grow or at least be maintained over the next couple of years. And I also look for companies that could continue to afford to pay their dividend. And for that, what we used was the dividend coverage ratio. A dividend coverage ratio is when we take the profits of the company and we compare that to the to the amount of dividends that that company paid. The more the company earned relative to the amount of dividends that they paid while the higher the dividend coverage ratio, clearly the higher is better. So we made sure that companies looked like they can afford to continue to pay their dividends. Okay. Let’s jump in with the first dividend paying stock. Our first US company is the International Flavors and Fragrances Company ticker symbol IFF. Basically what they do is they create, manufacture and supply flavors and fragrances for food, beverages, personal care products, household products, things along those lines. Their products are used in things like perfume, soaps, some food, some beverages and a long list of products. But I’m sure we’ll get the point of basically what they do. They provide the fragrances and the flavors to companies to manufacture their products. Now, I like IFF because it seems that they have some defensive nature to their business, which could ultimately be quite useful if we’re worried at all about a stock market crash. Plus, when we look at their dividend, well, we can see that dividends have grown nicely over the past few years and as we could see with analyst estimates. Those are the green bars. Well, it seems that dividends are expected to continue to grow over the next couple of years, according to analysts. Right now, their dividend yield is just short of two and a half percent. Now, when we add earnings per share to this chart, that’s the orange lines. Well, clearly, earnings per share is much larger than the blue bars, which is dividends. So clearly they look somewhat capable of paying their dividends, using nothing more than just the profits that they’re currently earning. So that’s a good thing for almost any dividend stock. Now, I also want to point out that here I use adjusted earnings per share. Adjusted earnings per share can be much more useful than stated numbers because adjusted numbers either add back or take away certain profit or expenses. Maybe they sold a piece of real estate or in the case of this company, they had fees from an acquisition that that they had made last year. Well, since that was true and clearly those numbers are outside the normal course of business, unless they make a new acquisition, those fees won’t exist. So you add back those fees, you end up with a higher earnings per share. If they had sold real estate and look like a profit, you would deduct that either way. That’s what we have there. That’s all we’re using through throughout all of the charts that we’re using adjusted earnings per share. Okay. Our next company jumps over the London Stock Exchange and it’s a company called Johnson Matthew Ticker Symbol JMAT. JMAT is one of the leaders in the refining and distribution of the gold, silver and platinum metal groups among a whole host of other things that they’re pushing for now. They’ve been around since the early eighteen hundreds. And as we could see with their dividend chart, clearly they’ve been fairly consistent. And when we jump in and add earnings per share to this chart, well here, just like all the other companies on this list, it seems that Johnson is doing a nice job of covering their distributions. So it seems that they’re two and a half percent or so dividend yield is quite safe. We’ll come back to them in a second. But for now, let’s jump over to the third company on the list. Back to the U.S. and that’s this, the dividend stock that has a slightly higher dividend yield. Up next, we have Lyondellbasell Industries ticker symbol, LYB. LYB has a dividend yield of almost four and a half percent. And what they do is they manufacture plastic, chemical and fuel products. And like I said, they have a. Great dividend right now. And when we look at their dividend per share chart. Well, the company, after they drop their dividends per share back in 2013, well, they’ve been growing it fairly nicely ever since then. And then when we add the earnings per share to the chart, well, it makes sense that they would have lowered the distributions from the 2012 level since back in 2012. Well, the dividends were getting relatively high compared to how much profits they had. So clearly the drop in dividends gave them more breathing room. And I wouldn’t be surprised if they’re able to at least maintain their current dividend growth rate for the next couple of years. So I like that one. OK. Back over the London exchange for a company called Anglo American Ticker Symbol AAL. Now, Anglo American is a global mining company, which includes mining for things like iron ore, copper, nickel. Things along those lines. Now, this company is actually closely tied to the last London exchange company that I mentioned, Johnson Matthew. And because Johnson Matthew is the sole marketing arm of Anglo American’s platinum division. Now, we might ask why include two companies that are so closely related? And the real reason I did this is that this company has a higher dividend yield at almost it’s about four point four percent compared to Johnson’s two point four percent. So I know we’re thinking if Anglo has a higher dividend yield, why include the other one at all? Well, for that we have a AAL’s dividend chart. And as we could see, it’s been a bit less consistent than all the other companies that we’ve looked at so far. And going forward now, when we add earnings per share to this chart, we can see that the volatility of their profits or their earnings is closely tied to the volatility of their dividends. But ultimately, I actually like this business because I think that this business should do fairly well over the next couple of years. And I think that Anglo has the possibility of meeting or at least following closely in line with what analysts are estimating on both the profit and on the dividend side. And if that happens? Well, it seems that their dividend is likely safe over the next few years and the four point four percent could add a nice diversified to our whole portfolio. Okay. Skipping back to the next U.S. stock here, we have Eastman Chemical Ticker symbol EMN now Eastman Chemicals and International Chemical Company that produces fibers, plastics and chemicals. They have a dividend yield of about 3 percent. And when we pull up their dividend per share chart, well, we can see clearly they’ve been growing quite nicely over the past few years and we mix in earnings per share into this whole thing. What we can see that their 3 percent dividend yield seems quite safe. In fact, I could easily see them ramping up the pace that they’re increasing their dividends by. So with that in mind, I think that this seems like a fairly stable dividend stock. Okay. Now we have one of the more dynamic companies from a trading perspective on our list, and that’s Rio Tinto ticker symbol RIO. Now, Rio Tinto is available on the London Stock Exchange. It’s also available in the US under the same ticker. And Rio Tinto Ltd is listed in Australia as well. So we can get this company from a whole different angles. Now, in London, Rio has a dividend yield of about six point three percent in the US to have a dividend yield of about five point seven. And in Australia, it’s slightly over 7 percent. So clearly it pays a good dividend. So Rio is an international mining company and they have interests in mines that mine everything from aluminum, coal, copper, gold, iron ore, diamonds, uranium, silver, zinc. And the list goes on and on. So this is what their dividends look like going back to 2012. And here I’m focusing on the London stock or the other stock exchanges. They look similar. Neither one is there’s no particular exchange that was significantly better or worse. So when we add earnings per share, well, broadly speaking, it seems that Rio Tinto has done a good job of covering their dividends outside of the one year. But going forward, I would expect for them to continue to at least maintain their dividend. So once again, this is one of those high dividend stocks that could make a good addition to most dividend portfolios. Now, if you’re interested in more high dividend stocks, real estate investment trusts or rates for short, well, they can be a great place for many of us to start. So if you’re interested in learning more about rates and she did a great primer video and that could be a great next video for you to watch. There’s a link in the description below and you can link right here. So feel free to check that out if that’s interesting to you. Besides that. Thank you so much for stick with me all the way to the end of the video. I really appreciate it. And we’re gonna do more dividend stocks for all the other sectors coming up soon. So don’t forget, hit the subscribe button, hit the thumbs up. Thanks for sticking with me. I’ll see you in the next video.