#7 - Best Buy (NYSE:BBY)
Best Buy (NYSE: BBY) - With a dividend yield of 3%, Best Buy is not necessarily the “belle of the ball” as it comes to dividend stocks, but it is being called a “titan of retail” with good reason. Despite facing tremendous pressure from Amazon, Best Buy has beaten the odds where competitors such as Circuit City and Radio Shack could not. Not only have they survived, but they are recognized as the premier physical electronics retailer. The formula for Best Buy centers around competitive pricing and store experience that delivers a personal touch that many electronics buyers prefer. Not only does the company still have 1,500 brick-and-mortar stores, it also has the seventh largest online retail e-commerce platform. This has helped the company more than double their EPS over the last four years even while revenue has remained flat. The anticipated growth of their online sales should provide compelling margins that propelled a 32 percent dividend increase in 2018 with further growth expected in 2019.
About Best Buy
Best Buy Co, Inc engages in the retail of technology products in the United States, Canada, and international. Its stores provide computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions.
More- Current Price
- $86.48
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 11 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $101.72 (17.6% Upside)
In 2018, investors experienced the effects of volatility on their portfolios. In the last two weeks of the year alone, many stocks made double-digit, or even triple-digit moves in both directions – many times in a single day. In the best case scenario, many investors saw much of their 2018 gains washed away. Market volatility is unavoidable. However, it can be managed with a proper strategy. A part of that strategy should include investing in high-quality dividend stocks. A company that pays a dividend is known for their financial stability. And many of the high-quality stocks in this category offer dividend yields that exceed the return of a 10-year Treasury bill.
However, many of the stocks that pay dividends are stocks that, during good times, can be considered growth stocks. This focus on growth can frequently cause investors to overlook these stocks. But the reasons for owning a stock that pays a great dividend is exactly that … to claim that regular dividend, particularly when the broader market is subject to volatility. No matter which direction these stocks move, investors can take comfort in banking those regular dividend payments which they can either reinvest or use as a source of income in retirement.
However, a successful dividend investing strategy is only as reliable as the ability of the company to pay that dividend. The companies that we’ve listed in this report have more going for them than attractive dividend yield. These companies also have a proven history of issuing, and in many cases, increasing their dividend payment.
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