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Based on their latest earnings outlooks, DICK’S Sporting Goods covers its annualized dividend more easily than Best Buy: the implied payout is about 42%–46% of DICK’S FY2026 diluted EPS guidance, compared with about 56%–57% of Best Buy’s FY2027 adjusted diluted EPS guidance. These are calculations from company disclosures, not company-reported payout ratios, and the different earnings definitions and forecast years make the comparison directional rather than perfectly like-for-like.
Dividend coverage at a glance
The implied payout ratio is the annualized dividend per share divided by the relevant earnings-per-share figure. Lower means more forecast earnings remain after the dividend, but it does not by itself establish that a dividend is secure.
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Best Buy eGift Card | $200.00 | Buy on Amazon |
| 2 |
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Best Buy eGift Card | $50.00 | Buy on Amazon |
| 3 |
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Best Buy eGift Card | $25.00 | Buy on Amazon |
| 4 |
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Best Buy Physical Gift Card | $50.00 | Buy on Amazon |
| 5 |
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Best Buy eGift Card | $200.00 | Buy on Amazon |
| Company | Latest quarterly dividend | Annualized rate if maintained | EPS outlook used | Implied earnings payout |
|---|---|---|---|---|
| DICK’S Sporting Goods | $1.25 per share, declared August 24, 2026; payable September 25, 2026. DICK’S 2026 Form 10-Q | $5.00 per share, assuming four quarterly payments at that rate. DICK’S 2026 Form 10-Q | FY2026 diluted EPS guidance: $10.94–$11.94. DICK’S 2026 Form 10-Q | About 42%–46%, calculated as $5.00 divided by the guidance range. DICK’S 2026 Form 10-Q |
| Best Buy | $0.96 per share, declared in its August 2026 Q2 release. Best Buy Q2 FY2027 earnings release | $3.84 per share, assuming four quarterly payments at that rate. Best Buy Q2 FY2027 earnings release | FY2027 adjusted diluted EPS guidance: $6.70–$6.90. Best Buy Q2 FY2027 earnings release | About 56%–57%, calculated as $3.84 divided by the guidance range. Best Buy Q2 FY2027 earnings release |
Why DICK’S looks better covered on this measure
DICK’S declared a quarterly dividend of $1.25 per share. At four payments a year, that would be $5.00 annually if the rate continues. Its FY2026 diluted EPS guidance of $10.94–$11.94 implies the dividend would consume roughly 42%–46% of earnings in that outlook.
That forecast is not simply an uncomplicated view of recurring earnings. DICK’S says it includes share dilution and costs associated with the Foot Locker acquisition, expected store-model redesign charges, and offsets for settlement income and tariff refunds. The company also described a more cautious view of the balance of the year amid marketplace conditions. Those items matter when interpreting the estimate: the payout calculation uses the company’s stated guidance, not an independently adjusted measure of ongoing earnings. DICK’S 2026 Form 10-Q
#1 Best Overall
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- Good at Bestbuy.com and in any US Best Buy location, Best Buy Mobile stores or Puerto Rico locations.
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Best Buy’s payout uses adjusted earnings
Best Buy increased its quarterly dividend by 1% to $0.96 per share in March 2026, and its August Q2 FY2027 release declared the same quarterly amount. Four payments at that rate would equal $3.84 per share over a year. Best Buy raised its FY2027 adjusted diluted EPS outlook to $6.70–$6.90; dividing the annualized dividend by that range gives an implied payout of about 56%–57%. Best Buy FY2026 Q4 and Q2 FY2027 earnings releases
Because Best Buy’s calculation uses adjusted EPS while DICK’S uses diluted EPS guidance, the percentages are not based on identical definitions. They also refer to different fiscal-year forecasts. The comparison is useful as a directional reading of the companies’ stated outlooks, not as a controlled, like-for-like ranking of normalized earnings.
Rank #2
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Earnings coverage is not cash-flow coverage
Best Buy reported $1.296 billion of cash from operating activities for the six months ended August 1, 2026, compared with $783 million in the prior-year period. The filing attributed much of the change to the timing and volume of inventory purchases and payments, as well as income-tax payment timing. Operating cash flow is not free cash flow: capital expenditures must be subtracted before describing the remainder as free cash flow. Best Buy Q2 FY2027 Form 10-Q
The disclosed figures here do not provide an aligned, comparable free-cash-flow coverage calculation for both companies. A confident cash-flow ranking would require operating cash flow less capital expenditures for each company over matching periods.
Quick Recap
Best Value
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Rank #4
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Rank #3
- Print to redeem in store or redeem from your mobile device
- Good at Bestbuy.com and in any US Best Buy location, Best Buy Mobile stores or Puerto Rico locations.
- Redemption: Instore and Online
- No returns and no refunds on gift cards.
What the payout figures can—and cannot—tell you
- They compare a current dividend rate with forecast EPS. The annualized dividend assumes the quarterly rate continues for four quarters; it is not a guarantee of future payments.
- They are not yields. Dividend yield depends on the share price, which is not part of this earnings-payout calculation.
- Boards decide future dividends. DICK’S says future declarations and per-share amounts remain subject to board authorization and depend on factors including future earnings, cash flows, financial requirements, and other considerations. DICK’S 2026 Form 10-Q
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