Best Buy Boosts Dividend, Approves $5 Billion Buyback

Best Buy's board approved a new $5 billion stock buyback program and increased its quarterly dividend by 7 percent.

Oliver Quillia for cnbc.com

The electronics retailer said the new stock buyback program replaces its current plan, which had called for the repurchase of $5.5 billion in stock. About $800 million was remaining under that authorization as of the end of the quarter ended May 28.

The dividend increase pushed Best Buy's quarterly dividend to 16 cents per common share. The next dividend will be paid on Oct. 25 to shareholders of record on Oct. 4.

Best Buy shares rose in pre-market trading in the wake of the news. Later Tuesday, Best Buy will hold its shareholder meeting.