7 Dividend Paying Buyout Targets for 2011

BEST BUY CO (BBY) Market capitalization: $11.82 billionDividend: $0.60 (2.00%)The electronics retailer has been a dominant force in its niche but continues to struggle against dual headwinds. On the one hand the company's consumers have reduced spending capacity because of rising costs like food and fuel. On the other hand, rising input costs have pressured Best Buy's margins as online competitors like Amazon grab market share in part because of their regulatory tax arbitrage. These factors along with the weak economy have had a negative effect on the business. For example, from 2006 to 2010, revenues increased from $30.848 billion to $49.694 billion. While sales grew, operating margins stumbled in the last two years from around 5.5% to around 4.5%.While we discuss Sears Holding as the most likely retail acquirer in "More on Possible Eddie Lampert/Sears Holdings Buyout Candidates," we think there are also strategic partners like... Read more