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

Last update: Feb 2, 2024

Consider BEST BUY CO INC (NYSE:BBY) as a top pick for dividend investors, identified by our stock screening tool. NYSE:BBY shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

A Closer Look at Dividend for NYSE:BBY

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:

With a Yearly Dividend Yield of 4.89%, BBY is a good candidate for dividend investing.
BBY's Dividend Yield is rather good when compared to the industry average which is at 3.30. BBY pays more dividend than 94.53% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.47, 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.
BBY has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.

Unpacking NYSE:BBY's Health Rating

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 5 for health provides valuable insights:

An Altman-Z score of 3.79 indicates that BBY is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.79, BBY is doing good in the industry, outperforming 78.13% of the companies in the same industry.
The Debt to FCF ratio of BBY is 0.83, which is an excellent value as it means it would take BBY, only 0.83 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.83, BBY is doing good in the industry, outperforming 78.13% of the companies in the same industry.
BBY has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:BBY, the assigned 7 is a significant indicator of profitability:

BBY has a Return On Assets of 7.56%. This is in the better half of the industry: BBY outperforms 75.78% of its industry peers.
The Return On Equity of BBY (45.38%) is better than 88.28% of its industry peers.
BBY's Return On Invested Capital of 19.60% is amongst the best of the industry. BBY outperforms 89.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBY is significantly above the industry average of 13.09%.
The last Return On Invested Capital (19.60%) for BBY is well below the 3 year average (27.37%), which needs to be investigated, but indicates that BBY had better years and this may not be a problem.
Looking at the Profit Margin, with a value of 2.93%, BBY is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Profit Margin of BBY has grown nicely.

More Best Dividend stocks can be found in our Best Dividend screener.

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

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.