JB Hi-Fi Share Price Surges as It Defies the Retail Gloom (ASX: JBH)

JB, you’ve done it again!

While most retailers are barely keeping their heads above water, JB Hi-Fi Ltd [ASX:JBH] is looking like Ian Thorpe in his prime.

At time of writing, the JB Hi-Fi share price is up 6.12%. A result that is testament to their ongoing success.

Sales for the electronics and entertainment retailer were up 3.7% over the September quarter. Their biggest increase in growth for well over a year.

Across the pond, their New Zealand stores were tracking similarly higher. They posted 3.8% growth for the quarter, bouncing back from a slower July.

Clearly they’ve got a knack for getting people to open up their wallets.

And while The Good Guys arm of the business faltered slightly, it’s still bringing in plenty of revenue. Down 0.5% for the quarter.

No signs of stopping

The good result was a timely and welcome addition for JB’s AGM. It has reinforced (once again) just how resilient this company is.

Plus, with online sales rapidly expanding (up 23%) for the 2019 financial year, the future is looking bright. Giving CEO Richard Murray the confidence to conclude:

In closing, in JB HI-FI and the Good Guys, we believe we have two unique and relevant brands, particularly in the eyes of our customers. With a customer focussed businesses model built on a diverse product offering, deep relationships with our suppliers, a high quality multichannel offer and exceptional customer service, we are confident we will maintain our market leading competitive position.

But, it’s not just customers who will have a reason to smile. Investors, particularly those hungry for a good mix of yield and growth, will be plenty pleased with Murray’s leadership.

As it stands, JB pays out 65% of its profit to shareholders. A sum that ensures investors are rewarded, but also that the company can keep growing.

With the annual dividend up 10 cents from last year, no doubt there will be few complaining. You’d be hard pressed to find any retailer who could match JB’s position right now.

However, savvy dividend hunters will know there are even better avenues for yield. Companies that can deliver income like you’ve never seen.

If you want to learn how to collect what could be the easiest money of your life, you should check out our top dividend stocks report. You can get your copy, for free, right here.


Ryan Clarkson-Ledward,
For Money Morning

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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