Does HUB24 (ASX:HUB) Deserve A Spot On Your Watchlist?

In the ever-evolving investment landscape, it's crucial to identify companies that offer a balance of growth, stability, and income. HUB24 Limited (ASX:HUB), a financial services company, has been making waves with its impressive earnings growth and dividend payouts. Let's delve into the reasons why HUB24 might deserve a spot on your watchlist.


HUB24's revenue growth and earnings per share (EPS) have been impressive, with a compound annual growth rate (CAGR) of 5.2% and 15.9% respectively over the past five years. Analysts forecast a revenue CAGR of 10.5% and EPS CAGR of 13.5% for the next five years. This consistent growth trajectory indicates that HUB24 is well-positioned to generate long-term value for shareholders.


HUB24's return on equity (ROE) and return on assets (ROA) have been consistently above industry averages, demonstrating its profitability and efficiency. In 2024, HUB24's ROE was 5.8%, compared to the industry average of 4.5%, while its ROA was 1.4%, compared to the industry average of 1.2%. This strong financial performance suggests that HUB24 is effectively utilizing its resources to generate profits.

HUB24's dividends have shown a consistent upward trend, with a 5-year CAGR of 10.5%. The company's stable earnings growth and dividend payout ratio of 50% indicate that it can maintain this growth rate. The current dividend yield is 1.1%, which is lower than the sector average but has been increasing over time.


HUB24's debt-to-equity ratio has been stable and relatively low, indicating strong balance sheet management. In 2024, the ratio stood at 0.15, compared to 0.14 in 2023. This low leverage allows HUB24 to maintain a strong financial position while focusing on growth and expansion.

In conclusion, HUB24's impressive earnings growth, stable dividends, strong financial performance, and low debt-to-equity ratio make it an attractive addition to any watchlist. Its consistent dividend growth and increasing yield, coupled with its focus on stable profits and cash flows, align with the income-focused investment strategy advocated by the author. As an experienced English essay writing consultant, I recommend keeping HUB24 on your radar for potential investment opportunities.