Is NYSE:BBY suited for dividend investing?

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.

Assessing Dividend Metrics for NYSE:BBY

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:BBY has been awarded a 7 for its dividend quality:

• With a Yearly Dividend Yield of 4.89%, BBY is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 3.35, BBY pays a better dividend. On top of this BBY pays more dividend than 96.06% 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 paid a dividend for at least 10 years, which is a reliable track record.
• As BBY did not decrease their dividend in the past 5 years, we can say the dividend looks stable.

Health Analysis for NYSE:BBY

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:BBY, the assigned 5 reflects its health status:

• An Altman-Z score of 3.81 indicates that BBY is not in any danger for bankruptcy at the moment.
• BBY has a Altman-Z score of 3.81. This is in the better half of the industry: BBY outperforms 77.17% 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's Debt to FCF ratio of 0.83 is fine compared to the rest of the industry. BBY outperforms 79.53% 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.

Understanding 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:

• Looking at the Return On Assets, with a value of 7.56%, BBY is in the better half of the industry, outperforming 76.38% of the companies in the same industry.
• BBY has a Return On Equity of 45.38%. This is amongst the best in the industry. BBY outperforms 88.19% of its industry peers.
• BBY's Return On Invested Capital of 19.60% is amongst the best of the industry. BBY outperforms 88.98% 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 12.82%.
• 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 63.78% 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.

Our latest full fundamental report of BBY contains the most current fundamental analsysis.

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.