Analyzing NYSE:BBY's Dividend Potential.

Our stock screener has singled out BEST BUY CO INC (NYSE:BBY) as a promising choice for dividend investors. NYSE:BBY not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Looking at the Dividend

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 4.21%, BBY is a good candidate for dividend investing.
• BBY's Dividend Yield is rather good when compared to the industry average which is at 3.39. BBY pays more dividend than 91.60% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.30, BBY pays a better dividend.
• On average, the dividend of BBY grows each year by 15.34%, which is quite nice.
• BBY has been paying a dividend for at least 10 years, so it has a reliable track record.
• BBY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

How do we evaluate the Health for NYSE:BBY?

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:BBY, the assigned 6 for health provides valuable insights:

• BBY has an Altman-Z score of 3.86. This indicates that BBY is financially healthy and has little risk of bankruptcy at the moment.
• BBY has a better Altman-Z score (3.86) than 81.51% of its industry peers.
• The Debt to FCF ratio of BBY is 1.12, which is an excellent value as it means it would take BBY, only 1.12 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 1.12, BBY belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
• A Debt/Equity ratio of 0.37 indicates that BBY is not too dependend on debt financing.

Profitability Analysis 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 Return On Assets of 7.46%. This is in the better half of the industry: BBY outperforms 78.99% of its industry peers.
• BBY has a Return On Equity of 41.21%. This is amongst the best in the industry. BBY outperforms 91.60% 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 87.39% 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 12.30%.
• The 3 year average ROIC (25.19%) 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 (3.01%) is better than 68.07% of its industry peers.

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

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.