Best Buy OK's $5B buyback, raises dividend 7 pct

MINNEAPOLIS — Best Buy Co. says it will buy back $5 billion of its common stock and is raising its quarterly dividend by 7 percent.

Shares of the consumer electronics chain added $1.21, or 3.8 percent, to $32.75 in pre-market trading.

Best Buy said Tuesday that the buyback replaces a $5.5 billion repurchase program that had about $800 million left as of May 28.

The company says it will also pay a quarterly dividend of 16 cents per share on Oct. 25 to shareholders of record on Oct. 4.

Best Buy's announcement came just ahead of its shareholders meeting in Richfield, Minn.

Last week Best Buy reported first-quarter results that topped Wall Street's expectations, helped by a bigger presence in China and renewed focus on hot-selling gadgets.