The Switzerland-based navigation giant plans to lift its annual payout to $4.20 per share, up from the current $3.60, pending shareholder approval at the annual meeting on June 5. If cleared, the quarterly distribution will rise to $1.05, offering an annual yield of approximately 1.94% based on Tuesday’s closing price of $216.98.
In section Market Quotes
Garmin Boosts Dividend 17% and Sets $500 Million Share Buyback
Garmin’s board of directors has proposed a 17% increase to its annual dividend alongside a new $500 million share repurchase program, signaling a robust return of capital to investors as its stock price surges.
Capital Allocation and Buyback Strategy
Beyond the dividend hike, Garmin authorized a new $500 million stock repurchase program effective through 2028. This plan replaces a previous $300 million authorization from February 2024, under which the company bought back roughly $244 million in shares through late December.The announcement triggered a sharp rally in the company’s valuation, with shares jumping 12% to $243.11 in premarket trading on Wednesday. Garmin, which currently holds a market capitalization of approximately $41.7 billion, confirmed that the new dividend schedule would begin with the June payment cycle if approved by investors.
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