This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
New Dividend: 17 cents quarterly (per share)
Dividend Percent Increase: 6%
Current Yield: 3.21%
Best Buy(BBY - Get Report) become a high-yield dividend stock? The firm's 40% drop so far in 2012 definitely helps that income-metric, but so does the fact that the firm's dividend payout has been defying gravity. Management announced a 6% dividend hike this week, bringing its quarterly payout to 17 cents per share.
Best Buy has had some big shakeups in the last few months. Its CEO resigned in disgrace. And BBY's founder (and 20% owner) resigned from his chairman and director duties at the start of this month. Frankly, Best Buy is probably a good example of why it doesn't make sense to go out chasing yield -- this stock has some serious challenges to its business in the next few years, even if (or maybe because) its biggest competitors have bowed out since the recession.
There are other high-yield names that make more sense to own in this market.
Best Buy shows up on a list of
2 Turnaround Stocks to Consider.