9. Best Buy Co., Inc. (NYSE:BBY)
Number of Hedge Fund Holders: 38
Best Buy Co., Inc. (NYSE:BBY) ranks ninth on our list of the best dividend stocks in the consumer cyclical sector. The American consumer electronics company deals in a wide range of related products and services. The company is focused on broadening its service offerings, with a particular emphasis on growing its Geek Squad operations and expanding its presence in the healthcare sector. These efforts not only enhance product sales but also contribute to higher margins and foster stronger customer loyalty. Maintaining efficient inventory and supply chain management remains essential, allowing the company to adapt to shifting market conditions while effectively meeting consumer demand.
In the fourth quarter of FY25, Best Buy Co., Inc. (NYSE:BBY) reported revenue of $13.9 billion, which fell by 4.7% from the same period last year. The company is reinforcing its position in the retail sector as a leading omni-channel destination for technology while working to enhance its operating income rate. At the same time, it is developing and expanding additional profit streams, such as Best Buy Marketplace and Best Buy Ads, which are expected to generate strong returns in the future.
Best Buy Co., Inc. (NYSE:BBY) CFO Matt Bilunas noted that consumers are displaying heightened price sensitivity amid ongoing inflation, leading to sluggish sales in the first quarter, with only a modest rebound anticipated in the latter half of 2025. His full-year sales outlook suggested that revenue could slightly trail the previous year’s total. Earnings are projected to remain relatively unchanged from fiscal 2025. These conservative growth expectations were set against the likelihood of price hikes, driven by tariffs imposed by the Trump administration on goods from Canada, Mexico, and China.
Best Buy Co., Inc. (NYSE:BBY)’s cash position remained strong from a dividend perspective. The company ended the quarter with approximately $1.6 billion available in cash and cash equivalents. Moreover, its operating cash flow for FY25 came in at over $2 billion, compared with $1.4 billion in the previous year. Recently, the company declared a 1.1% hike in its quarterly dividend to $0.95 per share. This was the company’s 12th consecutive year of dividend growth. As of March 4, the stock has a dividend yield of 5.01%.
