Exploring HUBBELL INC (NYSE:HUBB)'s dividend characteristics.

Our stock screener has spotted HUBBELL INC (NYSE:HUBB) as a good dividend stock with solid fundamentals. HUBB shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Assessing Dividend for HUBB

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. HUBB was assigned a score of 7 for dividend:

• Compared to an average industry Dividend Yield of 4.55, HUBB pays a better dividend. On top of this HUBB pays more dividend than 89.69% of the companies listed in the same industry.
• On average, the dividend of HUBB grows each year by 7.79%, which is quite nice.
• HUBB has been paying a dividend for at least 10 years, so it has a reliable track record.
• HUBB has not decreased their dividend for at least 10 years, which is a reliable track record.
• 34.43% of the earnings are spent on dividend by HUBB. This is a low number and sustainable payout ratio.

How do we evaluate the Health for HUBB?

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For HUBB, the assigned 8 for health provides valuable insights:

• An Altman-Z score of 5.53 indicates that HUBB is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 5.53, HUBB belongs to the top of the industry, outperforming 89.69% of the companies in the same industry.
• HUBB has a debt to FCF ratio of 1.93. This is a very positive value and a sign of high solvency as it would only need 1.93 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.93, HUBB belongs to the top of the industry, outperforming 87.63% of the companies in the same industry.
• HUBB has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
• 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.

How do we evaluate the Profitability for 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. HUBB scores a 9 out of 10:

• HUBB's Return On Assets of 11.62% is amongst the best of the industry. HUBB outperforms 95.88% of its industry peers.
• HUBB's Return On Equity of 23.75% is amongst the best of the industry. HUBB outperforms 93.81% of its industry peers.
• HUBB's Return On Invested Capital of 15.56% is amongst the best of the industry. HUBB outperforms 94.85% of its industry peers.
• HUBB had an Average Return On Invested Capital over the past 3 years of 14.28%. This is above the industry average of 9.63%.
• The last Return On Invested Capital (15.56%) for HUBB is above the 3 year average (14.28%), which is a sign of increasing profitability.
• HUBB has a better Profit Margin (13.79%) than 93.81% of its industry peers.
• HUBB's Profit Margin has improved in the last couple of years.
• HUBB has a better Operating Margin (19.62%) than 97.94% of its industry peers.
• In the last couple of years the Operating Margin of HUBB has grown nicely.
• Looking at the Gross Margin, with a value of 33.99%, HUBB is in the better half of the industry, outperforming 78.35% of the companies in the same industry.
• HUBB's Gross Margin has improved in the last couple of years.

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

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.