The board of Garmin Ltd. (NYSE:GRMN) has announced that it will pay a dividend on the 27th of September, with investors receiving $0.75 per share. The payment will take the dividend yield to 1.7%, which is in line with the average for the industry.
See our latest analysis for Garmin
Garmin’s Projected Earnings Seem Likely To Cover Future Distributions
We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. The last dividend was quite easily covered by Garmin’s earnings. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth.
The next year is set to see EPS grow by 3.7%. Assuming the dividend continues along recent trends, we think the payout ratio could be 42% by next year, which is in a pretty sustainable range.
Garmin Has A Solid Track Record
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