Garmin (NYSE:GRMN) Is Increasing Its Dividend To $0.90

Yahoo

13-05-2025

Garmin Ltd. (NYSE:GRMN) will increase its dividend on the 27th of June to $0.90, which is 20% higher than last year's payment from the same period of $0.75. This makes the dividend yield about the same as the industry average at 1.5%.
We've discovered 1 warning sign about Garmin. View them for free.
We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. However, Garmin's earnings easily cover the dividend. This means that most of its earnings are being retained to grow the business.
Looking forward, earnings per share is forecast to rise by 29.4% over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 33%, which is in the range that makes us comfortable with the sustainability of the dividend.
Check out our latest analysis for Garmin
The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The dividend has gone from an annual total of $1.92 in 2015 to the most recent total annual payment of $3.00. This implies that the company grew its distributions at a yearly rate of about 4.6% over that duration. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. It's encouraging to see that Garmin has been growing its earnings per share at 8.3% a year over the past five years. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.
In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 1 warning sign for Garmin that investors should take into consideration. Is Garmin not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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