Analyzing NYSE:BBY's Dividend Potential.

Last update: Jun 19, 2024

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.

Dividend Assessment of NYSE:BBY

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:BBY has been assigned a 8 for dividend:

BBY has a Yearly Dividend Yield of 4.29%, which is a nice return.
BBY's Dividend Yield is rather good when compared to the industry average which is at 3.43. BBY pays more dividend than 92.00% of the companies in the same industry.
BBY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
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.

A Closer Look at Health for NYSE:BBY

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:BBY was assigned a score of 5 for health:

The Debt to FCF ratio of BBY is 0.95, which is an excellent value as it means it would take BBY, only 0.95 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BBY (0.95) is better than 80.80% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that BBY is not too dependend on debt financing.

Exploring NYSE:BBY's 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:

The Return On Assets of BBY (8.43%) is better than 79.20% of its industry peers.
BBY's Return On Equity of 40.33% is amongst the best of the industry. BBY outperforms 90.40% of its industry peers.
The Return On Invested Capital of BBY (19.21%) is better than 88.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBY is significantly above the industry average of 13.95%.
The last Return On Invested Capital (19.21%) 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.
With a decent Profit Margin value of 2.90%, BBY is doing good in the industry, outperforming 64.00% of the companies in the same industry.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

Disclaimer

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.