How to Buy Best Buy (BBY) Stock

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Contributor, Benzinga
June 21, 2023

Best Buy (NYSE: BBY) is known as the go-to retailer for electronics, appliances, accessories and other devices. Although the story hasn’t always been rosy, Best Buy stock has managed to adapt and maintain positive growth.

The retail brand went public in 1985 and has now opened more than 1,200 stores in the U.S, Mexico, Canada, China and 9 European countries. Learn more about Best Buy and how you can buy BBY stock now.

Quick Look at the Best Way to Buy Best Buy Stock:

$76.31
0.16[0.21%]
Last update: 9:28AM (Delayed 15-Minutes)
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Open-Close-
Vol / Avg.1.910K / 3.112MMkt Cap16.436B
Day Range- - -52 Wk Range62.300 - 86.110

How to Buy Best Buy (NYSE: BBY) Stock

Since going public in 1985, Best Buy (NYSE: BBY) stocks have consistently delivered. Best Buy saw a 21.3% year-over-year increase in the 3rd quarter results that ended October 31, 2020. 

BBY has a fast-growing online presence and offers Geek Squad services that help customers with software installation and also to fix and repair broken devices. If you are new to the stock market and wondering how to buy stocks, follow the guide below. 

  1. Pick a brokerage.

    Best Buy is listed on the NYSE, and like many other companies, you can buy its shares through online stock brokers. Just research and pick a suitable stock broker online.

    Ensure to carry out due diligence before choosing a broker to ensure the broker matches your needs. Some charge fees and commissions for every trade, while others do not. Some of the best brokers allow you to buy fractional shares, which is a great option if you’re looking to diversify.

    A fractional share is any portion of a stock or exchange-traded fund (ETF) that is less than 1. You could only buy 1 full unit of a company's shares in the past, but now you can buy pieces or fractions of a stock.

    It’s easy to invest online with an online brokerage. Follow these simple steps:

    1. Register and then set up an account with your preferred broker.

    2. Verify your account. Most brokers require you to provide them with your Know your Customer (KYC) information before you can fund or buy stocks due to the U.S. Securities and Exchange Commission (SEC) regulations.

    3. Buy your stocks. Follow the instructions on your broker's platform (website or app) to make your order.

  2. Decide the number of shares you want.

    Before you buy stocks of any company, you must first decide how many shares you want.  The number of shares varies depending on your purchasing power (your capital) and your portfolio's overall plan. There is no one size fit all, and ultimately, you buy according to your pocket and budget.

  3. Choose your order type.

    Buying stocks with an online broker is referred to as carrying out an order. There are various types of order, and if you are new to investing, you might need to understand the different types before carrying out your 1st order. Below are some of the most popular order types available to you.

Best Online Stock Brokers

Limit Order

A limit order allows you to specify the price you want to make the purchase. In a limit order, you can only make a purchase when your specified price is reached.  

Market Order

Placing a market order means you want to buy the shares at the current market price at the transaction time. For example, If the current price for Best Buy Stock is $30 and you place a market buy order, your broker will fill the order as soon as possible. You will get the shares instantly at that price as long as the price does not change before the order is executed.  

Stop-Loss Order

A stop-loss order allows you to buy or sell a stock once the stock falls or rises to a particular price. This type of order is mostly used to limit or control your loss on a stock or security.

For example, let’s say you bought 5 units of Best Buy shares at $50 each. Due to unforeseen market changes, you're afraid of losing money to a dip. You could set a stop-loss order at 10% below the purchase price. 

If a dip eventually happens, you'll only lose $5 (10% of 50) for each unit of shares owned. That still leaves you with $45 for each unit of share owned.

Step 4: Execute your trade. 

To execute a trade means to complete the buying and selling of a stock or any other asset. An executed trade means the order has been filed and fulfilled. 

How does this work?

  1. After deciding what shares you want to buy and the unit, you submit an order to your broker.
  2. Your broker then sends the filled order on your behalf to the market.  
  3. The order is considered executed once it gets fulfilled.

Best Buy Stock History

Best Buy went public in 1985, raising $8 million through an initial public offering. Best Buy shares traded in 2010 at around $40 before experiencing a downturn in 2012, which saw its shares crashing down to $11.20. 

Best Buy rebounded and soared as high as $84.37 in late 2018. In 2020 BBY dipped, falling as low as $49.01. Best Buy has since recovered, rallying as high as $124.89 in 2021. This makes BBY among the overall best performers in the retail sector in 2021.

Exclusions for Retail Investors

There are several exclusions for retail investors. Let’s take a look at a few:

IPO exclusion

Retail investors are more or less excluded from participating in an IPO. An initial public offering (IPO) is the first time that a private company's stock is offered to the public. 

When a company goes public through an IPO, there are usually 2 stock prices: the offering price and the opening price. The offering price is majorly offered to institutional investors (mutual funds, hedge funds, pension funds). The opening price is offered to the rest of the public when the stocks begin trading.  

Limited access to secondary offerings

Companies sometimes raise money by issuing new or closely-held shares after an initial public offering (IPO). These types of offerings are known as secondary offerings. Most secondary offerings are bought by institutional investors and exclude retail investors because companies consider it cumbersome to get to many ordinary investors.

Pros to Buying Best Buy Stock

  • There is a lot of potential in the consumer electronics market. New mobile devices, computers, video and audio appliances, gaming systems are released constantly to eager anticipating customers who can go to great lengths — queueing and pre-ordering to get their hands on these new technologies.
  • Best Buy's customer base consists of older millennials and baby boomers aged 30 to 45. This demographic is great for business because of the growing spending power of the age group. 
  • Amazon remains a major threat to brick and mortar stores. However, Best Buy seems to have handled the Amazon situation. In what looks like a beautiful partnership, Best Buy sells some Amazon-branded products in its stores.

Con of Buying Best Buy Stock

The growing success of online shopping with Amazon at the forefront remains a major threat for traditional brick and mortar retailers like Best Buy.   

Is Best Buy Stock a Good Investment?

It's an undeniable fact that our homes and our lives can’t do without technology. Devices like laptops, mobile phones, audio and video systems will only see improved demand, and Best Buy is rightly positioned to meet that demand.

Although BestBuy faces stiff competition from other retail giants like Amazon and Walmart, Best Buy has achieved spectacular success in the retail tech niche, while Amazon and Walmart remain diverse. 

Frequently Asked Questions

Q

Does Best Buy pay dividends?

A

Yes. Best Buy pays investors $2.80 per share and has a dividend yield of 2.36%. Best Buy pays out about 46.13% of its earnings as a dividend.

Q

Does Best Buy pay dividends monthly or yearly?

A

Best Buy pays dividends once a year and not monthly.

Q

Where can I find a broker to buy Best Buy stock?

A

You can find a broker using the above list.

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About Chika Uchendu

Chika Uchendu is an investing writer and investment platform analyst passionate about helping people learn more about managing their finances, making informed investment decisions, and navigating the complex landscape of investment platforms to find the best options for their financial goals and needs. He has over 8 years of experience writing compelling articles for various reputable publishers across diverse topics. When he’s not writing content, he’s wrangling and analyzing data to help businesses make informed decisions.