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

By Mill Chart

Last update: Jul 10, 2024

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.

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A Closer Look at Dividend 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 8 for its dividend quality:

  • With a Yearly Dividend Yield of 4.57%, BBY is a good candidate for dividend investing.
  • BBY's Dividend Yield is rather good when compared to the industry average which is at 3.60. BBY pays more dividend than 92.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 2.38, BBY pays a better dividend.
  • The dividend of BBY is nicely growing with an annual growth rate of 15.34%!
  • BBY has paid a dividend for at least 10 years, which is a reliable track record.
  • BBY has not decreased their dividend for at least 10 years, which is a reliable track record.

Evaluating Health: 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 6 reflects its health status:

  • BBY has an Altman-Z score of 4.52. This indicates that BBY is financially healthy and has little risk of bankruptcy at the moment.
  • BBY has a better Altman-Z score (4.52) than 84.00% of its industry peers.
  • The Debt to FCF ratio of BBY is 0.95, which is an excellent value as it means it would take BBY, only 0.95 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of BBY (0.95) is better than 80.00% of its industry peers.
  • BBY has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.

Assessing 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:

  • BBY has a Return On Assets of 8.43%. This is in the better half of the industry: BBY outperforms 78.40% of its industry peers.
  • The Return On Equity of BBY (40.33%) is better than 90.40% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 19.21%, BBY belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
  • BBY had an Average Return On Invested Capital over the past 3 years of 25.19%. This is significantly above the industry average of 13.88%.
  • The last Return On Invested Capital (19.21%) for BBY is well below the 3 year average (25.19%), which needs to be investigated, but indicates that BBY had better years and this may not be a problem.
  • The Profit Margin of BBY (2.90%) is better than 64.80% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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


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.