Best Buy Increases Dividend 40%

Yesterday Best Buy (BBY) announced a 40% increase in the company's quarterly dividend. The new quarterly dividend increases to 14 cents versus 10 cents in the same period last year. On a sequential basis the dividend increases 7.7% versus the 13 cent quarterly dividend in the prior quarter. The projected payout ratio is approximately 17% based on February 2009 estimated earnings per share of $3.31. The 5-year average payout ratio equals 19%. BBY has an S&P Quality Ranking of B+.

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