Best Buy to expand; raises dividend, share buyback

Goldman Sachs Group Inc. will facilitate those transactions. Goldman Sachs and JPMorgan Chase advised Best Buy on the accelerated share repurchase program.

Best Buy said most of the impact of the accelerated share repurchase program would be included in its share count by the end of July.

The board intends in October to increase the quarterly cash dividend to 13 cents per share from 10 cents. Best Buy paid its first cash dividend in December 2003 and has raised it annually since then.

The new total planned store count assumes 1,400 U.S. Best Buy superstores, up from a previous projection of 1,000 and 852 currently operating.

The new plan would also increase the number of Canadian Best Buy and Future Shop stores to at least 200 from 169 currently operating and the number of U.S. Pacific Sales stores to up to 200 from 14.

Shares of Best Buy were up 71 cents, or 1.6 percent, at $45.70 after rising as high as $45.90 in morning trading on the New York Stock Exchange.

The company said last week that it expected demand and profit to gain steam later this year, fueled by mobile phones, music players and high-definition TVs.