Bed Bath and Beyond
Bed Bath and Beyond (BBBY) is another best-in-breed retail name that's on our list of shareholder yield champs this week. If you focused solely on dividends, BBBY wouldn't even be on your radar; this $14 billion housewares retailer doesn't pay one. But that doesn't mean that the firm doesn't return capital to shareholders; $1 billion in share buybacks last year adds up to a 7.3% shareholder yield.
It's worth noting that debt extinguishment isn't an option for BBBY -- the firm doesn't have any debt.
Bed Bath and Beyond's flagship stores offer everything from kegerators, massage chairs, and other household gadgets to more non-discretionary items like sheets, pots, and pans. That combination has made BBBY successful at attracting shoppers and getting them to spend. Other store concepts like Buy Buy Baby, Cost Plus and Christmas Tree Shops are expanding the firm's core focus, and they provide one of the biggest opportunities for top line expansion right now. All told, the firm operates nearly 1,500 stores in North America.
That's particularly impressive: despite recent big acquisitions of new store brands and a huge footprint of real estate, BBBY has financed all of its growth through cash on hand and equity. That lack of a debt load means that shareholders claim a bigger piece of the pie -- and that pie looks underpriced right now. For all of BBBY's growth prospects, shares trade for just 13 times trailing earnings.