Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) - A Dividend Stock Worth Considering

Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) was identified as a strong dividend candidate by our stock screener. The company stands out for its attractive yield, solid dividend history, and reasonable financial health, making it a potential option for income-focused investors.

Key Dividend Strengths

• High Dividend Yield: HASI offers a yield of 5.93%, well above the S&P 500 average of 2.36% and outperforming 86% of its financial services peers.
• Reliable Payout History: The company has paid dividends for at least 10 years without cuts in the past three years, indicating stability.
• Sustainable Payout Ratio: With 59.97% of earnings allocated to dividends, the payout is on the higher side but remains manageable given earnings growth.

Profitability & Financial Health

• Decent Profitability (Rating: 5/10): HASI maintains a Return on Equity (ROE) of 13.72%, outperforming 70% of industry peers. However, its Return on Invested Capital (ROIC) is weak at 0.44%, signaling room for improvement.
• Moderate Financial Health (Rating: 5/10): The company has a high Debt/Equity ratio (1.88), but strong liquidity metrics, including a Current Ratio of 11.25, which is better than 99% of competitors.

Valuation & Growth

• Reasonable Valuation: Trading at a P/E of 10.55, HASI appears cheaper than 66% of its industry and the broader market.
• Mixed Growth Outlook: While past Revenue growth (22.06% annually) has been strong, future revenue is expected to decline slightly (-4.57%). Earnings per share (EPS) growth is projected at 9.03%, supporting dividend sustainability.

For a deeper dive into HASI’s fundamentals, review the full report here.

Our Best Dividend Stocks screener provides more high-quality dividend ideas.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.