Best Buy Co., Inc. to Issue Quarterly Dividend of $0.96 (NYSE:BBY)

Key Points

• Best Buy declared a quarterly dividend of $0.96 per share, payable October 8 to shareholders of record on September 17, representing an annualized dividend of $3.84 and a 4.6% yield.
• The company has increased its dividend for 22 consecutive years, with a 57.2% payout ratio; analysts expect earnings to continue covering the dividend comfortably.
• Best Buy exceeded quarterly expectations with adjusted EPS of $1.47 and revenue of $9.78 billion, while analysts maintain a consensus “Hold” rating and an $83.75 target price.

Best Buy Co., Inc. (NYSE:BBY - Get Free Report) announced a quarterly dividend on Thursday, August 27th. Shareholders of record on Thursday, September 17th will be paid a dividend of 0.96 per share by the technology retailer on Thursday, October 8th. This represents a c) dividend on an annualized basis and a dividend yield of 4.6%. The ex-dividend date is Thursday, September 17th.

Best Buy has raised its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 22 years. Best Buy has a payout ratio of 57.2% meaning its dividend is sufficiently covered by earnings. Research analysts expect Best Buy to earn $7.10 per share next year, which means the company should continue to be able to cover its $3.84 annual dividend with an expected future payout ratio of 54.1%.

Best Buy Trading Down 4.2%

Shares of NYSE:BBY opened at $83.77 on Friday. Best Buy has a 52 week low of $55.10 and a 52 week high of $91.26. The company's 50 day moving average is $83.01 and its two-hundred day moving average is $71.26. The company has a market cap of $17.66 billion, a PE ratio of 15.51, a P/E/G ratio of 2.50 and a beta of 1.29. The company has a current ratio of 1.12, a quick ratio of 0.40 and a debt-to-equity ratio of 0.38.

Best Buy (NYSE:BBY - Get Free Report) last released its quarterly earnings data on Thursday, August 27th. The technology retailer reported $1.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.39 by $0.08. The business had revenue of $9.78 billion during the quarter, compared to analysts' expectations of $9.59 billion. Best Buy had a net margin of 2.73% and a return on equity of 48.70%. The company's revenue for the quarter was up 3.6% on a year-over-year basis. During the same period in the previous year, the company earned $1.28 EPS. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. Equities analysts predict that Best Buy will post 6.6 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

BBY has been the topic of a number of analyst reports. Evercore raised their price target on Best Buy from $65.00 to $85.00 in a research note on Friday, May 29th. Bank of America began coverage on Best Buy in a research report on Monday, August 3rd. They set an "underperform" rating and a $80.00 price objective for the company. Wells Fargo & Company increased their price objective on Best Buy from $65.00 to $85.00 and gave the company an "equal weight" rating in a report on Tuesday, August 11th. Wedbush reissued a "buy" rating on shares of Best Buy in a research report on Monday. Finally, DA Davidson restated a "buy" rating and set a $90.00 target price on shares of Best Buy in a research note on Monday, June 22nd. Seven analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Best Buy currently has a consensus rating of "Hold" and a consensus target price of $83.75.

Best Buy Company Profile

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.

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