Why NYSE:BBY qualifies as a good dividend investing stock.

Unearth the potential of BEST BUY CO INC (NYSE:BBY) as a dividend stock recommended by our stock screening tool. NYSE:BBY maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Unpacking NYSE:BBY's Dividend Rating

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:BBY has received a 7 out of 10:

• BBY has a Yearly Dividend Yield of 4.75%, which is a nice return.
• Compared to an average industry Dividend Yield of 3.14, BBY pays a better dividend. On top of this BBY pays more dividend than 94.66% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.45, BBY pays a better dividend.
• The dividend of BBY is nicely growing with an annual growth rate of 20.83%!
• BBY has been paying a dividend for at least 10 years, so it has a reliable track record.
• As BBY did not decrease their dividend in the past 5 years, we can say the dividend looks stable.

Looking at the Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:BBY has received a 5 out of 10:

• BBY has an Altman-Z score of 3.80. This indicates that BBY is financially healthy and has little risk of bankruptcy at the moment.
• BBY has a better Altman-Z score (3.80) than 77.86% of its industry peers.
• The Debt to FCF ratio of BBY is 0.83, which is an excellent value as it means it would take BBY, only 0.83 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.83, BBY is in the better half of the industry, outperforming 77.10% of the companies in the same industry.
• BBY has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.

Exploring NYSE:BBY's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:BBY has earned a 7 out of 10:

• BBY has a Return On Assets of 7.56%. This is in the better half of the industry: BBY outperforms 74.81% of its industry peers.
• BBY has a Return On Equity of 45.38%. This is amongst the best in the industry. BBY outperforms 88.55% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 19.60%, BBY belongs to the top of the industry, outperforming 89.31% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for BBY is significantly above the industry average of 13.05%.
• The 3 year average ROIC (27.37%) for BBY is well above the current ROIC(19.60%). The reason for the recent decline needs to be investigated.
• The Profit Margin of BBY (2.93%) is better than 63.36% of its industry peers.
• BBY's Profit Margin has improved in the last couple of years.

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

Check the latest full fundamental report of BBY for a complete fundamental analysis.

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.