, its shares up 240% over the last 40 months, is loosening the purse strings.
The electronics retailer raised its quarterly dividend to 10 cents from 8 cents Wednesday and added roughly $1 billion to its stock buyback authorization. The 8-cent addition to the annual dividend amounts to $38.9 million and brings the company's annual dividend outlay to about $194 million.
Best Buy earned $1.14 billion in the year ended in February and last week reported earnings that blew past Wall Street forecasts. It had $2.3 billion in cash and equivalents as of May 27, and a BBB S&P credit rating.
Based on Tuesday's closing price of $52.93, Best Buy's shares yield 0.75% with the new dividend.
The higher buyback authorization, in which Best Buy terminated a program with $552 million remaining and replaced it with a new $1.5 billion program, reflects "anticipated future earnings and cash flow, its strong balance sheet, and the planned capital needed for the company's growth plans," Best Buy said.
"Growing our company through customer centricity continues to be our top priority. We are thrilled that we have the capacity to invest in growth as well as return a portion of our capital to our shareholders," stated Brad Anderson, vice chairman and CEO of Best Buy.