June 10--Best Buy Co. raised its quarterly dividend by 12 percent, or 2 cents, a bigger-than-expected jump announced Tuesday morning just before shareholders gathered at the company's annual meeting.
The move will mean that shareholders will get a dividend of 19 cents a share, up from the 17 cents that Best Buy has paid quarterly since June 2012. Investors had been expecting an increase but only to 18 cents.
The company's shares jumped just over 1 percent in early trading on the New York Stock Exchange while the broader market was lower.
The dividend amounts to a 2.6 percent yield for investors, just above the 2.5 percent yield of Wal-Mart Stores Inc., the largest retailer and a benchmark for the sector. Best Buy said the new dividend will be payable on Oct. 2 to shareholders of record as of Sept. 11.
"Our decision to increase the amount of cash we are returning to shareholders is indicative of our improved cash position and our confidence in the cash-generating power of our multi-channel business model," Best Buy chief executive Hubert Joly said in a statement.
Joly and other executives will meet shareholders at the company's Richfield headquarters this morning.
Kavita Kumar -- 612-673-4113
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Original headline: BRIEF: Best Buy raises dividend as shareholders meet
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