rtmark
LearnBonds.com

Best Buy Stock Is a Perfect Option for Defensive Portfolio

Best Buy stock

Best Buy (NYSE: BBY) stock price appreciation along with a long dividend growth history makes it a perfect stock for a defensive portfolio. BBY shares grew almost 50% since the beginning of this year; the shares are up 76% in the past three years.

On the other hand, the company has raised its dividends in the past fifteen consecutive years. Moreover, the company has been raising its dividends at a double-digit rate.

It has recently increased the quarterly dividend by 10% to $0.50 per share, yielding around 2.50%. Defensive investors always like to invest in companies that offer steady share growth along with solid dividends.

Best Buy Stock

Financial Numbers are Supporting Gains

The specialty retail company has been growing at a robust pace. Its strategy of investing in high margin businesses is helping in enhancing margins. The company topped third-quarter revenue estimate by $57 million.

Its Q3 revenue grew 1.7% from the year-ago period. Moreover, the company generated 11% year over year earnings per share growth in the third quarter.

The company is showing confidence in its Blue strategy. The CEO says, “We are excited about our progress and opportunities as we execute on our Building the New Blue strategy, designed to develop deeper relationships with our customers and uniquely position us over the long term.”

The dividends are safe. This is because of its cash flow generation potential. The company has generated $937 million in operating cash flows in Q3 compared to dividend payments of $131 million. Indeed, the huge gap in operating cash flows and dividend payments offers room for more dividend increases.

Expectations for Bigger Earnings Growth is a Bullish Factor for Best Buy Stock

The company has updated its earnings guidance for the full year. This is because of its investments in high margin areas combined with the strategy of lowering the number of outstanding shares.

It has bought more than $300 million of common stock in the latest quarter. The retailer anticipates full-year earnings in the range of $5.81 to $5.91, representing double-digit growth from last year. Overall, several catalysts are offering support to Best Buy stock price and dividends

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
Users should remember that all trading carries risks and users should only invest in regulated firms. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.