Richfield-based Best Buy Company, Inc., on Tuesday announced plans to buy back $5 billion of its stock and boost its quarterly dividend by 7 percent to 16 cents per share, payable to shareholders of record as of October 4.
"Best Buy's business generates significant cash flow, and we are committed to using that cash in a disciplined manner," CEO Brian Dunn said in a statement. "We are very pleased to announce this new share repurchase program that underscores our commitment to enhancing returns for shareholders."
The new share repurchase plan replaces a $5.5 billion repurchase program that started in 2007.
In a separate announcement made on Monday, Raleigh, North Carolina-based Valencell, Inc., said that it has received $5.5 million in a round of venture capital investment led by Best Buy Capital, the electronic retailer's investment arm.
Valencell is a start-up that makes earbud headphones that monitor the health and fitness of the user by tracking heart rate, calories burned, distance traveled, and more, the company said in a news release. That data is then transferred to smartphones or mp3 players.
According to Valencell spokesperson Shawn Ramsey, Best Buy Capital invested $2.5 million in the company, and the remaining funds were provided in equal parts by venture capital firms TDF and True Ventures.
Best Buy is Minnesota's third-largest public company based on its revenue for the fiscal year that ended in February 2010, which totaled $49.7 billion. The company reported $50.3 billion in revenue for its most recently completed fiscal year.