Is NYSE:BBY a Good Fit for Dividend Investing?

BEST BUY CO INC (NYSE:BBY) has caught the attention of dividend investors as a stock worth considering. NYSE:BBY excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Assessing 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 7 for its dividend quality:

• BBY has a Yearly Dividend Yield of 5.11%, which is a nice return.
• Compared to an average industry Dividend Yield of 3.25, BBY pays a better dividend. On top of this BBY pays more dividend than 96.00% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.32, BBY pays a better dividend.
• On average, the dividend of BBY grows each year by 15.34%, which is quite nice.
• BBY has paid a dividend for at least 10 years, which is a reliable track record.
• As BBY did not decrease their dividend in the past 5 years, we can say the dividend looks stable.

Health Analysis for 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 5 reflects its health status:

• BBY has an Altman-Z score of 4.34. This indicates that BBY is financially healthy and has little risk of bankruptcy at the moment.
• BBY has a Altman-Z score of 4.34. This is amongst the best in the industry. BBY outperforms 83.20% 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.
• The Debt to FCF ratio of BBY (1.73) is better than 74.40% of its industry peers.
• A Debt/Equity ratio of 0.38 indicates that BBY is not too dependend on debt financing.

Assessing Profitability for 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 77.60% of its industry peers.
• BBY's Return On Equity of 40.65% is amongst the best of the industry. BBY outperforms 90.40% of its industry peers.
• The Return On Invested Capital of BBY (19.06%) is better than 88.80% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for BBY is significantly above the industry average of 13.93%.
• The last Return On Invested Capital (19.06%) 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 (2.86%) is better than 64.00% of its industry peers.

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

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

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.