HUBBELL INC (NYSE:HUBB) – A Reliable Dividend Stock with Strong Fundamentals

HUBBELL INC (NYSE:HUBB) stands out as a compelling choice for dividend investors, thanks to its solid dividend profile, strong profitability, and healthy financial position. The company, which designs and manufactures electrical and electronic products, has been identified by our dividend screener for its consistent payouts and sustainable business model.

Dividend Strength

• Attractive Yield: HUBB offers a dividend yield of 1.38%, which is competitive within its industry. While not the highest, it is more sustainable than many peers.
• Reliable Growth: The company has increased its dividend at an annual rate of 7.79% over the past five years, demonstrating a commitment to rewarding shareholders.
• Long Track Record: HUBB has paid dividends for at least 10 years without reductions, making it a dependable choice for income-focused investors.
• Sustainable Payout: With a payout ratio of 34.14%, the company retains enough earnings to reinvest in growth while maintaining dividend stability.

Profitability & Financial Health

• High Profitability: HUBB earns a 9/10 in ChartMill’s Profitability Rating, reflecting strong margins and returns. Its Return on Invested Capital (16.04%) and Operating Margin (19.87%) rank among the best in the industry.
• Solid Financial Position: The company holds a 7/10 Health Rating, supported by a manageable debt-to-equity ratio (0.45) and a healthy Altman-Z score (5.54), indicating low bankruptcy risk.
• Cash Flow Strength: HUBB generates consistent operating cash flow, ensuring it can cover dividends and future investments.

Valuation Considerations

HUBB trades at a P/E ratio of 23.73, slightly below the industry average, suggesting reasonable valuation given its strong fundamentals. While not deeply undervalued, its high profitability justifies the premium.

For investors seeking a balance of income and stability, HUBB presents a well-rounded opportunity.

Our Best Dividend Stocks screener provides more high-quality dividend picks.
For a deeper dive, review the full fundamental report on HUBB.

Disclaimer

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