Is NYSE:BBY suited for dividend investing?

Unearth the potential of BEST BUY CO INC (NYSE:BBY) as a dividend stock recommended by our stock screening tool. NYSE:BBY maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Understanding NYSE:BBY's Dividend

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:BBY has achieved a 8 out of 10:

• With a Yearly Dividend Yield of 4.30%, BBY is a good candidate for dividend investing.
• BBY's Dividend Yield is rather good when compared to the industry average which is at 3.39. BBY pays more dividend than 93.60% of the companies in the same industry.
• BBY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
• The dividend of BBY is nicely growing with an annual growth rate of 15.34%!
• BBY has paid a dividend for at least 10 years, which is 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.

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 6 reflects its health status:

• BBY has an Altman-Z score of 4.51. This indicates that BBY is financially healthy and has little risk of bankruptcy at the moment.
• BBY's Altman-Z score of 4.51 is amongst the best of the industry. BBY outperforms 84.80% of its industry peers.
• 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.
• BBY's Debt to FCF ratio of 0.95 is amongst the best of the industry. BBY outperforms 80.80% of its industry peers.
• A Debt/Equity ratio of 0.37 indicates that BBY is not too dependend on debt financing.

Profitability Insights: NYSE:BBY

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:BBY was assigned a score of 7 for profitability:

• BBY has a Return On Assets of 8.43%. This is in the better half of the industry: BBY outperforms 78.40% of its industry peers.
• BBY has a Return On Equity of 40.33%. This is amongst the best in the industry. BBY outperforms 90.40% of its industry peers.
• BBY has a better Return On Invested Capital (19.21%) than 88.00% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for BBY is significantly above the industry average of 13.11%.
• 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.
• BBY has a better Profit Margin (2.90%) than 65.60% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Our latest full fundamental report of BBY contains the most current fundamental analsysis.

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.