There was $800 million remaining in an earlier share repurchase program started in 2007, according to a report from Barron’s. The earlier share repurchase program was for $5.5 billion.

“Best Buy's business generates significant cash flow and we are committed to using that cash in a disciplined manner,” Brian Dunn, CEO of Best Buy, explained in a statement carried by Reuters. “We are very pleased to announce this new share repurchase program that underscores our commitment to enhancing returns for shareholders.”

Best Buy was to have a shareholder meeting Tuesday in Minnesota.

In addition to the $5 billion stock repurchase program, Best Buy also announced an upcoming 7 percent dividend increase, according to the Dow Jones News Service. The 7 percent increase brings the company’s dividend to 16 cents per share.

As it looks ahead, Best Buy is facing lower demand for TVs and is seeing competition from Amazon.com (News - Alert) and other online rivals, Dow Jones said.

In addition, Best Buy is investing in its Five Star stores in China and mobile stores in the United States, Dow Jones adds.

“They're going to continue to invest in small stores and China and the Internet and clearly they can do all that and return value to shareholders,” BB&T Capital Markets analyst Anthony Chukumba told Dow Jones.

In other recent company news, TMCnet reported that Best Buy Connect, Best Buy's mobile broadband service, has teamed up with Telespree (News - Alert) Communications to offer a prepaid mobile broadband service for Best Buy Connect subscribers.

In a related matter, TMCnet reported that “strong” sales in the mobile phone sector has led to Best Buy doing better than predicted in revenue and earnings during the recent first quarter.

According to a story in Barron’s, Best Buy saw revenue for the three months ended in May increasing 1.4 percent to $10.94 billion – compared to the same quarter last year.

Analysts had predicted the company would get quarterly revenues of $10.7 billion, according to Barron’s.

However, net income for the recent quarter at Best Buy dropped 12 percent because consumers decided to delay buying such items as TVs and DVDs, TMCnet said.

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