Best Buy Co's (BBY.N) board raised its quarterly dividend by 7 percent to 16 cents a share and approved a plan to purchase back $5 billion of common stock, sending its shares up about 4 percent. The increase in the dividend takes effect with the Oct. 25 payout to shareholders of record Oct. 4, the world's largest consumer electronics chain said in a statement on Tuesday. Sales at Best Buy stores open at least 14 months have fallen consistently in the past four quarters, but some investors still prefer the company for its steady cashflow and its ability to stay profitable and pay dividends. (For a related BUY/SELL column, click.) Best Buy's new $5 billion share repurchase program replaces the retailer's prior $5.5 billion buyback plan, which had about $800 million of remaining authorization as of the first quarter ended May 28, the company said ahead of a meeting with shareholders.
Best Buy Co., Inc. is a multinational retailer of consumer electronics, home office products, entertainment software, appliances and related services. Shares of BBY jumped 2.89% or $0.91/share to $32.73. In the past year, the shares have traded as low as $28.09 and as high as $45.63. On average, 8596160 shares of BBY exchange hands on a given day and today's volume is recorded at 900478.
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