Best Buy (BBY) Declares $0.92 Dividend

Best Buy said on March 2, 2023 that its board of directors declared a regular quarterly dividend of $0.92 per share ($3.68 annualized). Previously, the company paid $0.88 per share.

Shares must be purchased before the ex-div date of March 22, 2023 to qualify for the dividend. Shareholders of record as of March 23, 2023 will receive the payment on April 13, 2023.

At the current share price of $83.26 / share, the stock's dividend yield is 4.42%. Looking back five years and taking a sample every week, the average dividend yield has been 2.92%, the lowest has been 1.80%, and the highest has been 5.56%. The standard deviation of yields is 0.86 (n=237).

The current dividend yield is 1.75 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.57. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.67%, demonstrating that it has increased its dividend over time.

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Analyst Price Forecast Suggests 2.97% Upside

As of March 4, 2023, the average one-year price target for Best Buy is $85.73. The forecasts range from a low of $69.69 to a high of $115.50. The average price target represents an increase of 2.97% from its latest reported closing price of $83.26.

The projected annual revenue for Best Buy is $46,781MM, an increase of 1.04%. The projected annual non-GAAP EPS is $6.68.

What is the Fund Sentiment?

There are 1648 funds or institutions reporting positions in Best Buy. This is an increase of 35 owner(s) or 2.17% in the last quarter. Average portfolio weight of all funds dedicated to BBY is 0.20%, an increase of 1.63%. Total shares owned by institutions decreased in the last three months by 3.79% to 192,962K shares. The put/call ratio of BBY is 1.45, indicating a bearish outlook.

What are large shareholders doing?

Jpmorgan Chase & holds 11,111K shares representing 5.02% ownership of the company. In it's prior filing, the firm reported owning 11,112K shares, representing a decrease of 0.00%. The firm increased its portfolio allocation in BBY by 16.25% over the last quarter.

Price T Rowe Associates holds 7,476K shares representing 3.38% ownership of the company. In it's prior filing, the firm reported owning 6,946K shares, representing an increase of 7.10%. The firm increased its portfolio allocation in BBY by 33.85% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 6,159K shares representing 2.78% ownership of the company. In it's prior filing, the firm reported owning 6,035K shares, representing an increase of 2.01%. The firm increased its portfolio allocation in BBY by 19.34% over the last quarter.

VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 4,721K shares representing 2.13% ownership of the company. In it's prior filing, the firm reported owning 4,678K shares, representing an increase of 0.90%. The firm increased its portfolio allocation in BBY by 17.37% over the last quarter.

VFINX - Vanguard 500 Index Fund Investor Shares holds 4,632K shares representing 2.09% ownership of the company. In it's prior filing, the firm reported owning 4,543K shares, representing an increase of 1.92%. The firm increased its portfolio allocation in BBY by 18.95% over the last quarter.

Best Buy Background Information
(This description is provided by the company.)

Best Buy is a leading provider of technology products, services and solutions. The company offers expert service at an unbeatable price more than 1.5 billion times a year to the consumers, small business owners and educators who visit our stores, engage with Geek Squad agents or use BestBuy.com or the Best Buy app. The company has operations in the U.S and Canada, where more than 70 percent of the population lives within 15 minutes of a Best Buy store, as well as in Mexico where Best Buy has a physical and online presence.

This story originally appeared on Fintel.