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

HUBBELL INC (NYSE:HUBB) stands out as a compelling choice for dividend investors, according to our Best Dividend Stocks screener. The company combines a solid dividend track record with strong profitability and financial health, making it a well-rounded candidate for income-focused portfolios.

Dividend Strength

• Consistent Payouts: HUBB has paid dividends for at least 10 years without reductions, demonstrating reliability.
• Growing Dividends: The company has increased its dividend at an annual rate of 7.79%, outpacing inflation and rewarding long-term shareholders.
• Sustainable Payout Ratio: Only 34.14% of earnings are allocated to dividends, leaving ample room for reinvestment and future growth.
• Reasonable Yield: At 1.32%, the yield is modest but well-supported, especially compared to peers in the Electrical Equipment industry.

Profitability and Health

• High Profitability Rating (9/10): HUBB excels in margins and returns, with an Operating Margin of 19.87% and ROIC of 16.04%, ranking above most industry competitors.
• Solid Financial Health (7/10): The company maintains a manageable Debt/Equity ratio of 0.45 and a strong Altman-Z score of 5.67, indicating low bankruptcy risk.
• Positive Cash Flow: Consistent free cash flow generation supports dividend sustainability and operational flexibility.

Valuation Considerations

While HUBB trades at a P/E of 24.62, slightly below the industry average, its premium is justified by superior profitability and stability. The PEG ratio suggests growth expectations are modest, but the dividend’s reliability adds appeal for conservative investors.

For a deeper dive, review the full fundamental report on HUBB.

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Disclaimer

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