Best Buy Co., Inc. (BBY) Is Not a Buy Without a Buyout, But This Stock Is

While I’m not interested in investing in electronics retail leader, Best Buy Co., Inc. (NYSE:BBY), there is another “off the radar” (see all Aaron’s hedge fund owners) stock that could be a solid investment. Aaron’s is cheaper than the other notable retailers on a valuation basis and has better return prospects. The company also pays a very modest 0.24% dividend, yet, what’s interesting is that the current dividend payout is only 3.5% of earnings or $7 million, versus the $129 million of cash on hand. If the company did decide to move its payout to 50% of earnings, the dividend yield would be upwards of 4%.