Hubbell announces quarterly dividend of $1.32 per share

SHELTON, CT - Hubbell Incorporated (NYSE:HUBB), a prominent player in the electrical and utility solutions sector with a market capitalization of $23 billion, has announced a regular quarterly dividend of $1.32 per share. The dividend is scheduled for payment on March 17, 2025, to shareholders who are on record as of February 28, 2025. According to InvestingPro data, this represents an annual dividend yield of 1.24%.

This dividend declaration follows a year where Hubbell reported revenues of $5.4 billion, with a solid 7.5% revenue growth in the last twelve months. InvestingPro analysis reveals the company maintains strong financial health with a current ratio of 1.66, underscoring the company’s role in providing infrastructure solutions that are crucial for reliable and efficient operation of critical services. These solutions contribute to powering economies and communities, with a focus on both the supply side ("in front of the meter") and the demand side ("behind the meter") of the energy market.

The company, with its corporate headquarters in Shelton, Connecticut, has maintained dividend payments for 54 consecutive years and raised them for 17 straight years, reflecting its financial health and commitment to returning value to its shareholders. The declared dividend is part of Hubbell’s long-standing policy to distribute earnings and is in line with its previous quarterly dividends. For deeper insights into Hubbell’s financial strength and dividend sustainability, InvestingPro subscribers can access comprehensive analysis and 12 additional ProTips.

Investors may view this announcement as a testament to Hubbell’s stability and confidence in its financial position. The dividend yield, calculated by annualizing the most recent dividend and dividing it by the stock’s price, is often used by investors as an indicator of the company’s financial strength and future performance.

While the dividend provides immediate value to shareholders, it also reflects the company’s ability to generate sufficient cash flow to fund operations and invest in growth while also rewarding its investors. Based on InvestingPro’s Fair Value calculations, the stock currently appears to be trading above its intrinsic value, with a P/E ratio of 30.59.

The announcement is based on a press release statement and is a key piece of information for current and potential investors, providing insight into the company’s financial practices and priorities. As the payment date approaches, shareholders of record by the end of February will be eligible to receive the dividend.

Hubbell’s performance and dividend declarations are of particular interest to those invested in the utility and electrical solutions industry, where the company has established itself as a leading manufacturer. The dividend payment is a part of Hubbell’s financial strategy, showcasing its commitment to shareholder returns against the backdrop of its operational achievements.

In other recent news, Hubbell Incorporated has seen significant developments. The company reported a 14% year-over-year increase in adjusted earnings per share for the third quarter of 2024, raising its full-year outlook despite challenges in the Telecom (BCBA:TECO2m) sector. Deutsche Bank (ETR:DBKGn) downgraded Hubbell’s stock rating to hold, adjusting its price target to $473, influenced by a reassessment of the valuation framework. In contrast, Bernstein initiated coverage on Hubbell with an Outperform rating, citing the company’s attractive exposure in the electrical grid, reshoring of manufacturing, data centers, and renewable energy sectors.

JPMorgan maintains a positive outlook on Hubbell, reflecting confidence in the company’s potential to capitalize on increasing demand for power generation and infrastructure improvements. In addition, Hubbell welcomed Garrick J. Rochow to its Board of Directors, expanding the board to ten members. Rochow’s extensive experience in the utility sector is expected to bring valuable insights to Hubbell as it focuses on grid modernization and electrification solutions. Lastly, the company overcame operational disruptions caused by Hurricanes Helene and Milton, expecting these storm-related orders to contribute positively to the fourth quarter. These are the recent developments for Hubbell Incorporated.

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