Another sign the economy is slowly beginning to pick up, North America’s largest consumer electronics retailer, Best Buy, has announced the company would increase its dividend by just over 7-percent on an annualized basis.
The company currently pays a $0.56 per share dividend annually, and will now raise that number to $0.60 per share annually.
Best Buy pays dividends quarterly.and lastly paid its $0.14 dividend on April 13.
The company said it would distribute the first updated dividend on October 26.
Shareholders who own Best Buy stock by October 5 of this year will be entitled to the increased dividend.The increase in dividends will surely make stockholders happy due to the increase in incoming net cash flows.
Additionally, it is a sign the company believes it will have sufficient free cash flows, hence is able to easily redistribute earnings to shareholders.
The Best Buy stock (NYSE:BBY) is trading up by almost 1-percent to $35.50 per share in early morning trading.