Best Buy Co., Inc. (NYSE:BBY) Declares Quarterly Dividend of $0.94

Best Buy Co., Inc. (NYSE:BBY) announced its latest quarterly dividend on Wednesday, November 27th. The company revealed that stockholders registered as of Tuesday, December 17th, will receive a dividend of $0.94 per share. This payment will be made on Tuesday, January 7th. The annualized dividend will be $3.76, offering shareholders a dividend yield of 4.27%. It is important to note that the ex-dividend date is set for Tuesday, December 17th.

Over the past three years, Best Buy has raised its dividend payment by an average of 18.7% each year. Impressively, the company has consistently increased its dividend every year for the last 21 years. With a payout ratio of 55.1%, Best Buy's dividends are well-supported by its earnings. Analysts forecast that Best Buy will earn $6.88 per share in the next year, implying that the expected payout ratio will adjust slightly to 54.7%, allowing the company to maintain its annual dividend of $3.76.

Current Stock Performance

On the day of the announcement, shares of NYSE:BBY fell by 0.4%, decreasing by $0.33 to a price of $88.15. The trading volume reached 3,913,844 shares, surpassing the company's average volume of 3,065,258 shares. Best Buy currently holds a market capitalization of $18.93 billion. The stock’s price-to-earnings ratio stands at 15.31, with a price-to-earnings-growth ratio of 2.44. Furthermore, the company has a debt-to-equity ratio of 0.37, a current ratio of 1.01, and a quick ratio of 0.34. Best Buy's shares have fluctuated between a 12-month low of $68.67 and a 12-month high of $103.71. The 50-day simple moving average is $94.38, while the 200-day simple moving average is $89.07.

Recent Earnings Performance

Best Buy reported its quarterly earnings results on Thursday, August 29th. The company achieved $1.34 earnings per share (EPS) for the quarter, exceeding analysts' expectations of $1.16 by $0.18. The firm also generated revenue of $9.29 billion during this quarter, which was above the projected $9.23 billion. However, year-over-year revenue declined by 3.1%. In the same quarter last year, Best Buy had reported $1.22 EPS. Analysts predict that the company will post $6.28 EPS for the current fiscal year.

Analyst Ratings Update

Best Buy's stock has been the subject of various research reports. For instance, Wedbush increased its price target for the company from $85.00 to $95.00 and maintained a "neutral" rating. Citigroup revised its price target down from $109.00 to $101.00 while giving Best Buy a "buy" rating. Similarly, Evercore ISI raised their target price from $90.00 to $94.00, assigning an "in-line" rating. Meanwhile, Loop Capital also lowered its target from $110.00 to $100.00 and maintained a "buy" rating. Additionally, StockNews.com changed its recommendation for Best Buy from a "buy" to a "hold" rating. Currently, one analyst has rated the stock as a sell, eight have issued holds, nine recommend buying, and one gives a strong buy rating. According to MarketBeat, Best Buy has an average rating of "Moderate Buy" with an average target price of $100.82.

Company Overview

Best Buy Co, Inc. operates in the retail market for technology products across the United States, Canada, and internationally. Its offerings include computing and mobile phone products, such as desktops and notebooks, mobile phones with carrier commissions, networking equipment, tablets, smartwatches, and a range of consumer electronics. The company also provides home theater products, including accessories, soundbars, and televisions.

Dividend, Stock, Performance