July 23, 2026 a 11:31 am
BBY: Dividend Analysis - Best Buy Co., Inc.
Best Buy Co., Inc. has a robust dividend profile, boasting over two decades of dividend history. With a consistent dividend policy and a sound financial foundation, the company offers attractive yield rates for dividend-seeking investors. The steadfast dividend growth further emphasizes the company’s commitment to returning value to shareholders through consistent distributions.
📊 Overview
The following overview presents key dividend metrics for Best Buy Co., Inc., providing insights into its sector performance and dividend health.
| Metric | Value |
|---|---|
| Sector | Retail |
| Dividend yield | 5.11% |
| Current dividend per share | $3.80 |
| Dividend history | 24 years |
| Last cut or suspension | None |
📈 Dividend History
A strong dividend history is crucial as it instills confidence in investors regarding future payouts. Best Buy Co., Inc.'s solid record emphasizes its reliable distribution policy.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 1.92 |
| 2025 | 3.80 |
| 2024 | 3.76 |
| 2023 | 3.68 |
| 2022 | 3.52 |
📉 Dividend Growth
Dividend growth is a vital indicator of a company's long-term potential for increasing returns to shareholders. Best Buy Co., Inc. has demonstrated respectable growth over multiple time horizons.
| Time | Growth |
|---|---|
| 3 years | 2.58% |
| 5 years | 11.55% |
The average dividend growth is 11.55% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio provides insights into the sustainability of dividend payments. It evaluates how much of the earnings are distributed as dividends, which is crucial for understanding financial health.
| Key figure | Ratio |
|---|---|
| EPS-based | 69.88% |
| Free cash flow-based | 49.85% |
Best Buy Co., Inc. demonstrates a healthy balance with a 69.88% (EPS) and 49.85% (FCF) based payout ratio, signifying a well-maintained dividend policy.
🔍 Cashflow & Capital Efficiency
Cash flow and capital efficiency indicate how effectively a company can manage its capital and generate returns. Best Buy Co., Inc.'s cash generation and capital allocation strategies are noteworthy.
| Metric | 2024 | 2025 | 2026 |
|---|---|---|---|
| Free Cash Flow Yield | 4.10% | 7.53% | 9.16% |
| Earnings Yield | 7.53% | 5.02% | 7.78% |
| CAPEX to Operating Cash Flow | 54.08% | 33.65% | 35.88% |
| Stock-based Compensation to Revenue | 0.33% | 0.33% | 0.33% |
| Free Cash Flow / Operating Cash Flow Ratio | 45.92% | 66.35% | 64.12% |
Best Buy Co., Inc.'s cash flow management exhibits efficiency with solid free cash flow generation and capital allocation strategies, supporting its dividend commitments.
🗣️ Balance Sheet & Leverage Analysis
Analyzing the balance sheet and leverage ratios helps in understanding the financial stability and how well a company can manage its debt obligations. Best Buy Co., Inc. has maintained strong leverage ratios.
| Metric | 2024 | 2025 | 2026 |
|---|---|---|---|
| Debt-to-Equity | 130.43% | 144.34% | 139.44% |
| Debt-to-Assets | 26.61% | 27.42% | 28.17% |
| Debt-to-Capital | 56.60% | 59.07% | 58.24% |
| Net Debt to EBITDA | 0.98 | 1.12 | 1.05 |
| Current Ratio | 0.999 | 1.026 | 1.107 |
| Quick Ratio | 0.372 | 0.392 | 0.426 |
| Financial Leverage | 4.902 | 5.264 | 4.949 |
Best Buy Co., Inc. maintains a sound financial structure with manageable leverage and robust liquidity, signaling healthy financial stability.
📈 Fundamental Strength & Profitability
Evaluating profitability and fundamental strength provides insights into the overall operational performance of the company. Best Buy Co., Inc. demonstrates strong profitability metrics across various measures.
| Metric | 2024 | 2025 | 2026 |
|---|---|---|---|
| Return on Equity | 40.65% | 33.01% | 36.07% |
| Return on Assets | 8.29% | 6.27% | 7.29% |
| Net Profit Margin | 2.86% | 2.23% | 2.56% |
| EBIT Margin | 3.85% | 3.24% | 3.48% |
| EBITDA Margin | 5.97% | 5.33% | 5.47% |
| Gross Margin | 22.10% | 22.60% | 22.48% |
| Research & Development to Revenue | 0% | 0% | 0% |
With noteworthy profitability and return metrics, Best Buy Co., Inc. is well-positioned in the market, reflecting strong operational performance.
📉 Price Development
🗳️ Dividend Scoring System
| Criteria | Score | Rating |
|---|---|---|
| Dividend yield | 5 | |
| Dividend Stability | 4 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 34/40
🏆 Rating
Best Buy Co., Inc. demonstrates commendable performance across key dividend and financial metrics, warranting a favorable outlook. With strong dividend yields, stable financials, and consistent historical payouts, it presents a robust opportunity for dividend investors seeking a reliable income stream. Recommended as a buy for income-focused portfolios.
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