Why NYSE:HUBB provides a good dividend, while having solid fundamentals.

Last update: Nov 10, 2023

Unearth the potential of HUBBELL INC (NYSE:HUBB) as a dividend stock recommended by our stock screening tool. NYSE:HUBB maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Looking at the Dividend

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:HUBB has been assigned a 7 for dividend:

HUBB's Dividend Yield is rather good when compared to the industry average which is at 2.34. HUBB pays more dividend than 93.10% of the companies in the same industry.
The dividend of HUBB is nicely growing with an annual growth rate of 8.25%!
HUBB has paid a dividend for at least 10 years, which is a reliable track record.
HUBB has not decreased their dividend for at least 10 years, which is a reliable track record.
HUBB pays out 34.71% of its income as dividend. This is a sustainable payout ratio.
The dividend of HUBB is growing, but earnings are growing more, so the dividend growth is sustainable.

What does the Health looks like for NYSE:HUBB

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:HUBB has earned a 7 out of 10:

HUBB has an Altman-Z score of 5.51. This indicates that HUBB is financially healthy and has little risk of bankruptcy at the moment.
HUBB has a Altman-Z score of 5.51. This is amongst the best in the industry. HUBB outperforms 85.06% of its industry peers.
HUBB has a debt to FCF ratio of 2.37. This is a good value and a sign of high solvency as HUBB would need 2.37 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.37, HUBB belongs to the best of the industry, outperforming 88.51% of the companies in the same industry.
Although HUBB does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
A Current Ratio of 2.16 indicates that HUBB has no problem at all paying its short term obligations.

Profitability Analysis for NYSE:HUBB

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:HUBB scores a 9 out of 10:

HUBB's Return On Assets of 11.99% is amongst the best of the industry. HUBB outperforms 91.95% of its industry peers.
With an excellent Return On Equity value of 25.25%, HUBB belongs to the best of the industry, outperforming 91.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.77%, HUBB belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
The 3 year average ROIC (11.25%) for HUBB is below the current ROIC(16.77%), indicating increased profibility in the last year.
HUBB has a Profit Margin of 13.18%. This is amongst the best in the industry. HUBB outperforms 88.51% of its industry peers.
In the last couple of years the Profit Margin of HUBB has grown nicely.
The Operating Margin of HUBB (18.85%) is better than 91.95% of its industry peers.
HUBB has a better Gross Margin (34.39%) than 81.61% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of HUBB

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.