BEST BUY CO INC (NYSE:BBY) – A Dividend Stock Worth Considering

BEST BUY CO INC (NYSE:BBY) stands out as a potential candidate for dividend investors, according to our Best Dividend Stocks screen. The company combines an attractive dividend yield with solid profitability and financial health, making it worth a closer look for income-focused portfolios.

Key Dividend Strengths

• High Dividend Yield: BBY offers a yearly dividend yield of 5.22%, well above the S&P 500 average of 2.36%. It also outperforms 91.74% of its peers in the Specialty Retail industry.
• Consistent Dividend Growth: The company has increased its dividend at an average annual rate of 13.37% over the past years, demonstrating a commitment to rewarding shareholders.
• Reliable Track Record: BBY has paid dividends for at least 10 years without reductions, indicating stability in its payout policy.

Profitability & Financial Health

While BBY’s Profitability Rating (6/10) is decent, it shows strong returns on equity (33.01%) and invested capital (18.94%), outperforming most competitors. However, its profit margins have seen some pressure recently.

The Health Rating (6/10) reflects a manageable debt level (Debt/Equity of 0.41) and a solid Altman-Z score (4.23), suggesting low bankruptcy risk. Liquidity metrics are weaker, but solvency remains strong.

Valuation & Growth Outlook

BBY trades at a reasonable P/E of 11.57, cheaper than 81.82% of its industry peers. Analysts expect EPS growth of 14.74% in the coming years, which could support further dividend increases.

For a deeper dive, review the full fundamental analysis of BBY.

Our Best Dividend Stocks screener lists more high-quality dividend stocks and is updated regularly.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.