How Best Buy Co., Inc. (BBY) Got its Mojo Back, and Why There is More Upside: Wal-Mart Stores, Inc. (WMT), Amazon.com, Inc. (AMZN)

Much of the gains made in Best Buy has already been made, but Best Buy’s business has stabilized. The market will continue to reward shares with a higher multiple as talks of privatization continue throughout 2013. The electronics retailer is more attractive than Amazon.com, Inc. (NASDAQ:AMZN), due to excessive valuation of the latter. Wal-Mart is another investment option for investors who want exposure to retailing.

Wal-Mart Stores, Inc. (NYSE:WMT) increased its dividend to $1.88, up from $1.59 per share. This gives investors a yield of around 2.6%. Best Buy also pays a dividend that yields 4.1%. A combination of a likely turnaround and a higher dividend makes Best Buy a more attractive investment than Wal-Mart.

The article How This Retailer Got its Mojo Back, and Why There is More Upside originally appeared on Fool.com and is written by Chris Lau.

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