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 profile with strong profitability and financial health, making it a well-rounded candidate for income-focused portfolios.
Dividend Strength
HUBB earns a Dividend Rating of 7/10, reflecting its reliable income potential. Key highlights include:
- Dividend Growth: The company has increased its dividend at an annual rate of 7.79%, demonstrating a commitment to rewarding shareholders.
- Track Record: HUBB has paid dividends for at least 10 years without reductions, indicating stability.
- Payout Ratio: Only 34.14% of earnings are allocated to dividends, suggesting sustainability with room for future increases.
- Yield Comparison: While its 1.21% yield is below the S&P 500 average, it outperforms 90% of peers in the Electrical Equipment industry.
Profitability & Financial Health
HUBB’s Profitability Rating of 9/10 underscores its earnings strength:
- High Margins: Operating margin (19.87%) and profit margin (14.27%) rank in the top tier of its industry.
- Strong Returns: ROIC (16.04%) and ROE (24.47%) reflect efficient capital use.
The company also maintains a Health Rating of 7/10, with:
- Low Debt: A manageable Debt/Equity ratio (0.45) and solid solvency metrics.
- Positive Cash Flow: Consistent free cash flow supports dividend sustainability.
Valuation & Growth
HUBB trades at a P/E of 25.65, slightly below industry averages. While not deeply undervalued, its premium is justified by strong fundamentals. Earnings are expected to grow at 8.34% annually, supporting future dividend hikes.
For a deeper analysis, review the full fundamental report here.
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Disclaimer
This is not investment advice. Always conduct your own research before making investment decisions.
