2024-02-15 07:00:00 ET
Summary
- Best Buy's cash from operations has been declining over the past few years, potentially due to increased competition from online retailers like Amazon and decreasing store count.
- The company has been closing stores at a rapid rate, which may be impacting their financials, closing 24 this fiscal year, and approximately 100 in the past 5 years.
- Best Buy is scheduled to report Q4 earnings, with analysts expecting an increase in earnings and revenue, but both estimates are down from the previous year.
- The current dividend is not covered by cash flows, signaling a dividend cut may be imminent, putting the company's Dividend Champion status at risk.
Introduction
Best Buy ( BBY ) is probably one of the most known electronic retailers in the world. The retailer has been around for decades, and I remember shopping there in my early years in search of the latest electronic gadgets. Although they are known for their tech retail & support, the Geek Squad, they also pay a near 5% yield and are a Dividend Champion. But looking deeper into the company's financials, the retailer has had some trouble over the past few years....
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For further details see:
Best Buy: Is The ~5% Yield Safe Or Is A Dividend Cut In The Works?