Interested In Garmin Ltd (NASDAQ:GRMN)’s Upcoming $0.53 Dividend? You Have 3 Days Left
Investors who want to cash in on Garmin Ltd’s (NASDAQ:GRMN) upcoming dividend of $0.53 per share have only 3 days left to buy the shares before its ex-dividend date, 15 June 2018, in time for dividends payable on the 29 June 2018. Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at Garmin’s most recent financial data to examine its dividend characteristics in more detail. View our latest analysis for Garmin
Here’s how I find good dividend stocks
When researching a dividend stock, I always follow the following screening criteria:
Is it the top 25% annual dividend yield payer?
Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Has it increased its dividend per share amount over the past?
Is its earnings sufficient to payout dividend at the current rate?
Will the company be able to keep paying dividend based on the future earnings growth?
How well does Garmin fit our criteria?
The current trailing twelve-month payout ratio for the stock is 65.40%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 64.49%, leading to a dividend yield of 3.42%. Furthermore, EPS should increase to $3.16. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. Although GRMN’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Shareholders would have seen a few years of reduced payments in this time. Compared to its peers, Garmin has a yield of 3.30%, which is high for Consumer Durables stocks but still below the market’s top dividend payers.
Next Steps:
Considering the dividend attributes we analyzed above, Garmin is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. There are three important aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for GRMN’s future growth? Take a look at our free research report of analyst consensus for GRMN’s outlook.
Valuation: What is GRMN worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether GRMN is currently mispriced by the market.
Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
