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Best Buy - Is It Your Portfolio's Best Buy?

Summary

Best Buy has an attractive dividend yield of 3.3%.

Best Buy is a well-paying dividend stock that is underpriced and has the expected growth to see some potentially great returns.

Best Buy has been a tech sales mogul for practically its entire life, and it is still proving to be holding its ground in this very competitive market today.

In 2014 Best Buy Co (NYSE:BBY) was facing its demise due to a loss of retail traffic thanks to major competitors like Amazon and online shopping. Facing the brink of extinction, Best Buy had to do something to stay relevant in the world today, and they appear to have made it past that hurdle.

At the beginning of 2012, Best Buy reached the pinnacle of earnings growth reporting an EPS (earnings per share) of $3.64, but unfortunately this was the same year many investors believed they would start to face extinction if things did not change quickly.

Over the next two years, Best Buy plummeted. Its EPS went from $3.64 at the start of 2012 to $2.07, a whopping 43% overall decrease in earnings (down 28% over 2012-2013 and down another 21% during 2013-2014), but Best Buy was not going down without a fight. With this eye opener, Best Buy knew it had to make a change to keep up with the ever-so-changing expectations of the market. The next fiscal year ending in January 2015 Best Buy showed they were still in the game by increasing its EPS from $2.07 to $2.59, an impressive 25% increase, especially after their two horrific years that put investors on edge, and have had a steady earnings growth rate averaging 10.5% per annum.

To breathe some life back into the company, Best Buy incorporated some major changes. Their first move was to keep up with...


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