Garmin Ltd. (NYSE:GRMN) Plans Quarterly Dividend of $0.90

Key Points

• Garmin Ltd. has declared a quarterly dividend of $0.90 per share, which translates to an annualized dividend of $3.60 and a yield of 1.50%, payable on September 26th to shareholders of record from September 12th.
• The company's recent earnings report showed a profit of $2.17 per share, exceeding analysts' expectations and indicating a 20.4% year-over-year revenue increase to $1.81 billion.
• Analysts have mixed opinions on Garmin's stock, with a consensus "Hold" rating and varying price targets reflecting different market outlooks.

Garmin Ltd. (NYSE:GRMN - Get Free Report) declared a quarterly dividend on Wednesday, July 30th, RTT News reports. Stockholders of record on Friday, September 12th will be given a dividend of 0.90 per share by the scientific and technical instruments company on Friday, September 26th. This represents a c) annualized dividend and a dividend yield of 1.6%.

Garmin has a dividend payout ratio of 42.8% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Garmin to earn $7.98 per share next year, which means the company should continue to be able to cover its $3.60 annual dividend with an expected future payout ratio of 45.1%.

Garmin Stock Performance

Shares of NYSE:GRMN traded up $0.03 during trading hours on Friday, hitting $218.79. 1,324,517 shares of the company's stock traded hands, compared to its average volume of 840,080. Garmin has a 52 week low of $160.71 and a 52 week high of $246.50. The company's fifty day simple moving average is $212.65 and its two-hundred day simple moving average is $209.02. The company has a market cap of $42.11 billion, a price-to-earnings ratio of 26.98, a price-to-earnings-growth ratio of 2.41 and a beta of 0.99.

Garmin (NYSE:GRMN - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The scientific and technical instruments company reported $2.17 earnings per share for the quarter, beating the consensus estimate of $1.90 by $0.27. Garmin had a net margin of 23.21% and a return on equity of 20.00%. The company had revenue of $1.81 billion during the quarter, compared to analyst estimates of $1.68 billion. During the same quarter last year, the firm posted $1.58 EPS. The business's revenue for the quarter was up 20.4% on a year-over-year basis. On average, analysts anticipate that Garmin will post 7.8 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several brokerages have commented on GRMN. Barclays reiterated an "underweight" rating and issued a $167.00 target price (up from $152.00) on shares of Garmin in a report on Wednesday. JPMorgan Chase & Co. raised their target price on shares of Garmin from $215.00 to $250.00 and gave the stock a "neutral" rating in a report on Thursday, July 17th. Finally, Morgan Stanley raised their target price on shares of Garmin from $172.00 to $186.00 and gave the stock an "underweight" rating in a report on Thursday. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $222.00.

Garmin Company Profile

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform.