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

Last update: Apr 30, 2024

BEST BUY CO INC (NYSE:BBY) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:BBY demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Unpacking NYSE:BBY's Dividend Rating

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:BBY earns a 7 out of 10:

BBY has a Yearly Dividend Yield of 5.00%, which is a nice return.
BBY's Dividend Yield is rather good when compared to the industry average which is at 3.49. BBY pays more dividend than 96.03% of the companies in the same industry.
BBY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
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 in the past 5 years, so it has a somewhat stable track record.

A Closer Look at Health for NYSE:BBY

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:BBY has earned a 5 out of 10:

BBY has an Altman-Z score of 4.35. This indicates that BBY is financially healthy and has little risk of bankruptcy at the moment.
BBY has a Altman-Z score of 4.35. This is amongst the best in the industry. BBY outperforms 84.13% of its industry peers.
The Debt to FCF ratio of BBY is 1.73, which is an excellent value as it means it would take BBY, only 1.73 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.73, BBY is doing good in the industry, outperforming 73.02% of the companies in the same industry.
A Debt/Equity ratio of 0.38 indicates that BBY is not too dependend on debt financing.

Profitability Assessment of NYSE:BBY

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:BBY, the assigned 7 is noteworthy for profitability:

The Return On Assets of BBY (8.29%) is better than 76.19% of its industry peers.
BBY's Return On Equity of 40.65% is amongst the best of the industry. BBY outperforms 89.68% of its industry peers.
BBY has a Return On Invested Capital of 19.06%. This is amongst the best in the industry. BBY outperforms 88.89% of its industry peers.
BBY had an Average Return On Invested Capital over the past 3 years of 25.19%. This is significantly above the industry average of 13.99%.
The 3 year average ROIC (25.19%) for BBY is well above the current ROIC(19.06%). The reason for the recent decline needs to be investigated.
With a decent Profit Margin value of 2.86%, BBY is doing good in the industry, outperforming 62.70% of the companies in the same industry.

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Check the latest full fundamental report of BBY for a complete fundamental analysis.

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.