Best Buy raises dividend

In this Sept 12, 2011 photo, a Best Buy employee looks over a cellphone contract for a customer at a Best Buy in Mountain View, Calif. Consumers spent less on autos, clothing and furniture, leaving retail sales unchanged in August. The lack of growth in retail sales during a month of wild stock market fluctuations may increase recession fears. (AP Photo/Paul Sakuma) AP Photo/Paul Sakuma

(AP) MINNEAPOLIS - Best Buy (BBY) said Thursday it is raising its dividend by a penny per share to 17 cents.

The move came about two hours ahead of its annual shareholders' meeting where it is expected to provide details on its turnaround plan. Shareholders will also be looking for information on how its search for a permanent CEO is going.

The higher dividend will be payable on Oct. 2 to shareholders of record as of Sept. 11.

The Minnesota-based electronics chain is trying to improve results in the face of increased competition from online retailers and discount stores.

A rapidly changing retail landscape threatens to make Best Buy's large "big box" store obsolete. In April, Best Buy said it would close 50 locations, cut 400 corporate jobs and trim $800 million in costs.

At the shareholder meeting, industry analysts expect Best Buy to provide both an update on plans to turn the company around and information about who will lead that effort.

Interim CEO Mike Mikan, who is one of the candidates, said during an earnings call in May that major change is needed in order for Best Buy to survive.

Best Buy shares dropped 13 cents to $20.18 in morning trading Thursday. They are up from a 52-week low of $17.53 on May 21.

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