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

BEST BUY CO INC (NYSE:BBY) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:BBY scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

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 8 for its dividend quality:

• BBY has a Yearly Dividend Yield of 4.11%, which is a nice return.
• BBY's Dividend Yield is rather good when compared to the industry average which is at 3.08. BBY pays more dividend than 93.39% of the companies in the same industry.
• BBY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.22.
• 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.
• BBY has not decreased their dividend for at least 10 years, which is a reliable track record.

ChartMill's Evaluation of Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:BBY has earned a 6 out of 10:

• BBY has an Altman-Z score of 4.31. This indicates that BBY is financially healthy and has little risk of bankruptcy at the moment.
• BBY has a better Altman-Z score (4.31) than 83.47% of its industry peers.
• The Debt to FCF ratio of BBY is 0.85, which is an excellent value as it means it would take BBY, only 0.85 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 0.85, BBY belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
• A Debt/Equity ratio of 0.37 indicates that BBY is not too dependend on debt financing.

Profitability Analysis for NYSE:BBY

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:

• Looking at the Return On Assets, with a value of 8.06%, BBY belongs to the top of the industry, outperforming 80.99% of the companies in the same industry.
• BBY's Return On Equity of 40.55% is amongst the best of the industry. BBY outperforms 90.08% of its industry peers.
• With an excellent Return On Invested Capital value of 19.41%, BBY belongs to the best of the industry, outperforming 87.60% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for BBY is significantly above the industry average of 12.24%.
• The last Return On Invested Capital (19.41%) 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 2.96%, BBY is doing good in the industry, outperforming 66.12% 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

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.