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Why NYSE:BBY is a Top Pick for Dividend Investors.

By Mill Chart

Last update: Nov 29, 2023

Our stock screening tool has identified BEST BUY CO INC (NYSE:BBY) as a strong dividend contender with robust fundamentals. NYSE:BBY exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

A Closer Look at Dividend for NYSE:BBY

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:BBY was assigned a score of 7 for dividend:

  • With a Yearly Dividend Yield of 5.31%, BBY is a good candidate for dividend investing.
  • BBY's Dividend Yield is rather good when compared to the industry average which is at 3.33. BBY pays more dividend than 94.62% of the companies in the same industry.
  • BBY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.63.
  • On average, the dividend of BBY grows each year by 20.83%, which is quite nice.
  • BBY has paid a dividend for at least 10 years, which is a reliable track record.
  • BBY has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.

Unpacking NYSE:BBY's Health Rating

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:BBY was assigned a score of 5 for health:

  • An Altman-Z score of 4.23 indicates that BBY is not in any danger for bankruptcy at the moment.
  • BBY has a better Altman-Z score (4.23) than 86.92% of its industry peers.
  • The Debt to FCF ratio of BBY is 0.63, which is an excellent value as it means it would take BBY, only 0.63 years of fcf income to pay off all of its debts.
  • BBY's Debt to FCF ratio of 0.63 is fine compared to the rest of the industry. BBY outperforms 79.23% of its industry peers.
  • A Debt/Equity ratio of 0.40 indicates that BBY is not too dependend on debt financing.

How do we evaluate the Profitability for NYSE:BBY?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:BBY has achieved a 7:

  • With a decent Return On Assets value of 8.42%, BBY is doing good in the industry, outperforming 76.92% of the companies in the same industry.
  • The Return On Equity of BBY (45.50%) is better than 88.46% of its industry peers.
  • BBY's Return On Invested Capital of 19.99% is amongst the best of the industry. BBY outperforms 89.23% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for BBY is significantly above the industry average of 13.26%.
  • The 3 year average ROIC (27.37%) for BBY is well above the current ROIC(19.99%). The reason for the recent decline needs to be investigated.
  • The Profit Margin of BBY (2.91%) is better than 60.77% of its industry peers.
  • In the last couple of years the Profit Margin of BBY has grown nicely.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of BBY

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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BEST BUY CO INC

NYSE:BBY (2/26/2024, 7:20:55 PM)

After market: 76.4 -0.05 (-0.07%)

76.45

+0.17 (+0.22%)

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