February 21, 2026 a 02:46 am
HUBB: Dividend Analysis - Hubbell Incorporated
Hubbell Incorporated has demonstrated consistent dividend growth over the past decades, appealing to long-term income-focused investors. With a steady payout and conservative payout ratios, Hubbell illustrates a resilient dividend profile. Let's delve into this dividend analysis to explore its potential as a reliable income stream.
📊 Overview
The overview provides an insight into Hubbell's dividend-related metrics. These data points can show the company's financial health and attractiveness to dividend-focused investors.
| Parameter | Details |
|---|---|
| Sector | Industrials |
| Dividend yield | 1.04% |
| Current dividend per share | 5.38 USD |
| Dividend history | 43 years |
| Last cut or suspension | None |
🗣️ Dividend History
Hubbell's long dividend history reveals its dedication to shareholder returns. Evaluating the past payments solidifies confidence in future dividends.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 1.42 |
| 2025 | 5.38 |
| 2024 | 4.98 |
| 2023 | 4.58 |
| 2022 | 4.27 |
📈 Dividend Growth
Dividend growth is a critical indicator of a company's commitment to increasing shareholder value and financial stamina.
| Time | Growth |
|---|---|
| 3 years | 8.01% |
| 5 years | 7.72% |
The average dividend growth is 7.72% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios give insight into the sustainability of the dividends. Analyzing both EPS and FCF-based ratios provides a broader view of coverage from earnings and cash flow.
| Key figure | Ratio |
|---|---|
| EPS-based | 32.07% |
| Free cash flow-based | 32.72% |
With an EPS payout ratio of 32.07% and an FCF payout ratio of 32.72%, Hubbell demonstrates a conservative approach, reflecting a robust ability to maintain and potentially grow its dividends.
🧮 Cashflow & Capital Efficiency
Analyzing cash flows and capital efficiency metrics can determine how well a company generates and utilizes its resources.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 3.70% | 3.58% | 4.06% |
| Earnings Yield | 3.75% | 3.44% | 4.31% |
| CAPEX to Operating Cash Flow | 15.06% | 18.20% | 18.81% |
| Stock-based Compensation to Revenue | 0.56% | 0.54% | 0.49% |
| Free Cash Flow / Operating Cash Flow Ratio | 84.94% | 81.80% | 81.19% |
Hubbell shows a strong control over its cash flows, ensuring the company efficiently invests in its operations while maintaining a healthy generation of free cash flow.
⚖️ Balance Sheet & Leverage Analysis
Assessing leverage ratios helps investigate a company's use of debt relative to equity, assets, and capital.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 0.68 | 0.53 | 0.80 |
| Debt-to-Assets | 0.32 | 0.26 | 0.33 |
| Debt-to-Capital | 0.40 | 0.34 | 0.44 |
| Net Debt to EBITDA | 1.52 | 1.08 | 1.67 |
| Current Ratio | 1.72 | 1.64 | 1.64 |
| Quick Ratio | 1.00 | 0.98 | 1.01 |
| Financial Leverage | 2.14 | 2.04 | 2.40 |
The company operates with moderate leverage, suggesting a stable balance sheet and good financial health. The current liquidity ratios also speak to a comfortable short-term solvency position.
📈 Fundamental Strength & Profitability
Profitability metrics and margins offer a deep dive into Hubbell's operational efficiency and financial performance.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 23.05% | 23.80% | 26.41% |
| Return on Assets | 10.78% | 11.65% | 10.99% |
| Net Profit Margin | 15.18% | 13.82% | 14.14% |
| Gross Profit Margin | 35.46% | 33.83% | 35.14% |
| EBIT Margin | 20.52% | 19.17% | 18.98% |
| EBITDA Margin | 22.99% | 22.94% | 21.77% |
Hubbell's consistent profit margins and competitive returns on equity and assets make it an attractive long-term investment. The company's operational efficiency stands out with healthy margins over the observed years.
📉 Price Development
🥇 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 34/40
🔍 Rating
Hubbell Incorporated presents a well-rounded dividend profile with sturdy growth, impressive stability, and financially sustainable practices. As a result, Hubbell should be considered a reliable dividend-paying stock, ideal for those looking to ensure steady income streams while participating in long-term capital appreciation.