Best Buy’s 6.1% Dividend Yield and 22-Year Streak Look Safe, but Here’s the Risk

Quick Read Best Buy (BBY) has raised its dividend for 22 consecutive years with a current yield of 6.1%, supported by an earnings payout ratio of 57.2% and free cash flow coverage of 1.57x, though FCF coverage declined from 1.72x the prior year and fell below 1.0x in FY2024. Best Buy’s dividend remains safe for now despite weakening free cash flow trends, but tariff headwinds or a disappointing AI PC replacement cycle could compress margins and threaten the dividend if FCF coverage falls below 1.2x. ...