Is NYSE:HUBB a Good Fit for Dividend Investing?

HUBBELL INC (NYSE:HUBB) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:HUBB demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Evaluating Dividend: NYSE:HUBB

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:HUBB scores a 7 out of 10:

• Compared to an average industry Dividend Yield of 2.43, HUBB pays a better dividend. On top of this HUBB pays more dividend than 92.39% of the companies listed 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.

Health Analysis for NYSE:HUBB

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:HUBB was assigned a score of 7 for health:

• An Altman-Z score of 5.02 indicates that HUBB is not in any danger for bankruptcy at the moment.
• HUBB has a Altman-Z score of 5.02. This is amongst the best in the industry. HUBB outperforms 84.78% 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.
• HUBB has a Debt to FCF ratio of 3.08. This is amongst the best in the industry. HUBB outperforms 80.43% of its industry peers.
• The current and quick ratio evaluation for HUBB is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Assessment of NYSE:HUBB

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:HUBB, the assigned 9 is a significant indicator of profitability:

• HUBB has a better Return On Assets (10.55%) than 92.39% of its industry peers.
• HUBB has a better Return On Equity (24.71%) than 92.39% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 14.09%, HUBB belongs to the top of the industry, outperforming 93.48% of the companies in the same industry.
• The last Return On Invested Capital (14.09%) for HUBB is above the 3 year average (12.44%), which is a sign of increasing profitability.
• HUBB has a better Profit Margin (13.20%) than 92.39% of its industry peers.
• In the last couple of years the Profit Margin of HUBB has grown nicely.
• Looking at the Operating Margin, with a value of 18.74%, HUBB belongs to the top of the industry, outperforming 94.57% of the companies in the same industry.
• HUBB's Operating Margin has improved in the last couple of years.
• With an excellent Gross Margin value of 34.56%, HUBB belongs to the best of the industry, outperforming 81.52% of the companies in the same industry.
• HUBB's Gross Margin has improved in the last couple of years.

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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.