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

Last update: Aug 16, 2024

Discover HUBBELL INC (NYSE:HUBB)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:HUBB showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Analyzing Dividend Metrics

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 2.40, HUBB pays a better dividend. On top of this HUBB pays more dividend than 88.04% 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 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.
35.08% of the earnings are spent on dividend by HUBB. This is a low number and sustainable payout ratio.

Exploring NYSE:HUBB's Health

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 5.38. This indicates that HUBB is financially healthy and has little risk of bankruptcy at the moment.
HUBB has a better Altman-Z score (5.38) than 88.04% of its industry peers.
The Debt to FCF ratio of HUBB is 2.86, which is a good value as it means it would take HUBB, 2.86 years of fcf income to pay off all of its debts.
HUBB has a Debt to FCF ratio of 2.86. This is amongst the best in the industry. HUBB outperforms 81.52% of its industry peers.
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.

Profitability Analysis for NYSE:HUBB

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:HUBB was assigned a score of 9 for profitability:

HUBB has a better Return On Assets (10.64%) than 94.57% of its industry peers.
HUBB has a Return On Equity of 23.94%. This is amongst the best in the industry. HUBB outperforms 93.48% of its industry peers.
With an excellent Return On Invested Capital value of 14.33%, HUBB belongs to the best of the industry, outperforming 94.57% of the companies in the same industry.
The 3 year average ROIC (12.44%) for HUBB is below the current ROIC(14.33%), indicating increased profibility in the last year.
HUBB has a Profit Margin of 13.11%. This is amongst the best in the industry. HUBB outperforms 92.39% of its industry peers.
HUBB's Profit Margin has improved in the last couple of years.
The Operating Margin of HUBB (18.74%) is better than 94.57% of its industry peers.
In the last couple of years the Operating Margin of HUBB has grown nicely.
With an excellent Gross Margin value of 34.25%, HUBB belongs to the best of the industry, outperforming 80.43% of the companies in the same industry.
In the last couple of years the Gross Margin of HUBB has grown nicely.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

Keep in mind

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.