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

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.

Analyzing Dividend Metrics

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:BBY scores a 7 out of 10:

• BBY has a Yearly Dividend Yield of 4.89%, which is a nice return.
• BBY's Dividend Yield is rather good when compared to the industry average which is at 3.29. BBY pays more dividend than 94.57% of the companies in the same industry.
• BBY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
• The dividend of BBY is nicely growing with an annual growth rate of 20.83%!
• 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.

ChartMill's Evaluation of 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:

• An Altman-Z score of 3.79 indicates that BBY is not in any danger for bankruptcy at the moment.
• BBY's Altman-Z score of 3.79 is fine compared to the rest of the industry. BBY outperforms 77.52% of its industry peers.
• BBY has a debt to FCF ratio of 0.83. This is a very positive value and a sign of high solvency as it would only need 0.83 years to pay back of all of its debts.
• BBY has a Debt to FCF ratio of 0.83. This is in the better half of the industry: BBY outperforms 76.74% of its industry peers.
• BBY has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.

A Closer Look at Profitability for NYSE:BBY

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 better Return On Assets (7.56%) than 75.19% of its industry peers.
• Looking at the Return On Equity, with a value of 45.38%, BBY belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
• The Return On Invested Capital of BBY (19.60%) is better than 89.15% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for BBY is significantly above the industry average of 13.17%.
• 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.
• BBY has a Profit Margin of 2.93%. This is in the better half of the industry: BBY outperforms 62.02% 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.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.