Best Buy (NYSE: BBY) gained some ground in the previous few trading session after topping some beaten-down consensus estimates with its Q2 earnings report on August 30.
On August 31, the Board of Directors of Best Buy authorized the payment of the quarterly cash dividend in the amount of $0.88 per common share held by investors making the forward yield now 4.7%. This news comes as a boon to dividend investors, who will be receiving this quarterly dividend on October 11, 2022, for those shareholders recorded until September 20, 2022.
Currently, the shares outstanding are at 225,065,760 shares, recorded on July 30. Furthermore, the firm posted $10.33 billion in revenue, a year-on-year decrease of 12.8%, but still beating estimates by $80 million. Similarly, the firm beat expectations on earnings per share (EPS) by $0.25, with the total EPS at $1.54.
BBY chart and analysis
In the last month, BBY has been trading in the $72.76 to $86.48 range, with considerably higher volume in the last couple of days. Meanwhile, the recent close above the 200-day Moving Average indicates that the long-term trend is still negative, but the short-term trend is neutral.
Further, technical analysis indicates that resistance is at $75.89 and support is at $72.36.
TipRanks analysts rate the shares a hold, seeing the average price in the next 12 months reaching $76.94, 2.74% higher than the current trading price of $74.89.
In the end, Best Buy has been a staple in dividend income-seeking investors’ portfolios, and with the most recent quarterly performance, the dividend should be fairly secure.
Additionally, the current macro environment could suit BBY as the firm offers electronics at a reasonable price, therefore, shrewd buyers may look to score a deal with Best Buy rather than competitors, thus boosting the share price.
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Source: https://finbold.com/best-buy-declares-dividend-after-beating-earnings-expectations-a-day-earlier/