Why NYSE:HUBB qualifies as a good dividend investing stock.

Our stock screening tool has identified HUBBELL INC (NYSE:HUBB) as a strong dividend contender with robust fundamentals. NYSE:HUBB exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Assessing Dividend Metrics for NYSE:HUBB

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 2.44. HUBB pays more dividend than 90.70% of the companies in the same industry.
• The dividend of HUBB is nicely growing with an annual growth rate of 7.77%!
• HUBB has been paying a dividend for at least 10 years, so it has a reliable track record.
• HUBB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• HUBB pays out 34.67% of its income as dividend. This is a sustainable payout ratio.

How do we evaluate the Health for NYSE:HUBB?

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:HUBB, the assigned 7 reflects its health status:

• HUBB has an Altman-Z score of 5.15. This indicates that HUBB is financially healthy and has little risk of bankruptcy at the moment.
• HUBB's Altman-Z score of 5.15 is amongst the best of the industry. HUBB outperforms 86.05% of its industry peers.
• HUBB has a debt to FCF ratio of 3.08. This is a good value and a sign of high solvency as HUBB would need 3.08 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 3.08, HUBB belongs to the best of the industry, outperforming 80.23% of the companies in the same industry.
• HUBB does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

A Closer Look at Profitability for NYSE:HUBB

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:HUBB has earned a 9 out of 10:

• Looking at the Return On Assets, with a value of 10.55%, HUBB belongs to the top of the industry, outperforming 91.86% of the companies in the same industry.
• HUBB's Return On Equity of 24.71% is amongst the best of the industry. HUBB outperforms 91.86% of its industry peers.
• HUBB has a Return On Invested Capital of 14.09%. This is amongst the best in the industry. HUBB outperforms 93.02% of its industry peers.
• The 3 year average ROIC (12.44%) for HUBB is below the current ROIC(14.09%), indicating increased profibility in the last year.
• The Profit Margin of HUBB (13.20%) is better than 91.86% of its industry peers.
• HUBB's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 18.74%, HUBB belongs to the best of the industry, outperforming 94.19% of the companies in the same industry.
• HUBB's Operating Margin has improved in the last couple of years.
• The Gross Margin of HUBB (34.56%) is better than 80.23% of its industry peers.
• HUBB's Gross Margin has improved in the last couple of years.

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 is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.