SCHAFFHAUSEN, Switzerland - Garmin Ltd . (NYSE: NYSE:GRMN) announced at its annual shareholders' meeting today that it has received approval for a cash dividend totaling $3.00 per share to be distributed over the next year. The dividend will be paid in four equal quarterly installments of $0.75 per share.
The first of these payments is scheduled for June 28, 2024, with a record date set for June 17, 2024. Subsequent dividends are planned for September 27, 2024, December 27, 2024, and March 28, 2025, with record dates preceding each payment.
Garmin, known for its GPS technology and wearable fitness trackers, has positioned itself as a key player in the tech industry, providing advanced products for a wide range of activities and sports. The company's commitment to innovation is evident in its diverse product lineup, designed to enhance the lives of its customers.
The press release also contained forward-looking statements regarding the company's business prospects. However, Garmin noted that these projections are subject to various risks and uncertainties and that actual results may differ materially. These risk factors are detailed in the company's Annual Report on Form 10-K for the year ended December 30, 2023.
Investors and shareholders are reminded that this dividend announcement is based on a press release statement and that future dividend payments are subject to change based on the company's financial health and market conditions. Garmin has made no further commitments to update any forward-looking statements as new information becomes available.
In other recent news, Garmin Ltd. experienced a significant shift in analyst perspectives. BofA Securities downgraded Garmin's stock from Neutral to Underperform, citing concerns over the current valuation. This decision was influenced by a potential slowdown in the positive momentum seen earlier in the year. In contrast, Tigress Financial Partners maintained a Strong Buy rating on Garmin, highlighting the company's record-setting first-quarter results and robust growth across multiple key categories.
Garmin achieved a 20% year-over-year increase in Q1 revenue, reaching a record $1.38 billion, with fitness revenue alone climbing 40% year-over-year to $342.89 million. The company's gross margin also improved to 58.1%, reflecting strong brand loyalty and demand for its advanced smart wearables. These developments are part of the company's recent performance.
The company's resilience is attributed to a diverse customer base with interests in aviation, marine, fitness, and outdoor activities. Garmin's new product introductions and operational excellence have been instrumental in attracting new customers. The company's Auto OEM revenue is expected to grow due to new client acquisitions. Despite these strong results, Garmin has chosen not to revise its full-year guidance, citing the timing of new product releases as a variable in the upcoming quarters.
InvestingPro Insights
Garmin Ltd. (NYSE: GRMN) has not only reinforced its commitment to shareholders with the recent dividend announcement but also exhibits a strong financial foundation. With a market capitalization of $31.45 billion and robust revenue growth of 12.98% in the last twelve months as of Q1 2024, Garmin's financial health seems to be on solid ground. This is further supported by a noteworthy gross profit margin of 57.74%, indicating efficient operations and a strong market position.
Investors may find comfort in Garmin's prudent financial management, as evidenced by one of the InvestingPro Tips which highlights that the company holds more cash than debt on its balance sheet. Additionally, Garmin's consistent track record of raising its dividend for 7 consecutive years underscores its reliability and commitment to returning value to its shareholders.
For those looking at investment longevity, another InvestingPro Tip points to Garmin's history of maintaining dividend payments for 22 consecutive years, suggesting a stable and investor-friendly approach. With these positive indicators, investors may consider exploring more insights and tips available on Garmin's InvestingPro profile, where they can find a total of 15 additional InvestingPro Tips to help inform their investment decisions.
Interested in a deeper analysis? Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro and unlock a wealth of expert financial data and tips to guide your investment strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.