Garmin Ltd paid a total dividend of 404 million USD last year, for a market capitalization of 9,561 millions.
Dividend per share of Garmin Ltd is 2.04 USD, and his stock market price 48.29 USD.
According to the chart, where dividend yield is displayed, Garmin Ltd has a dividend yield of 4.22%, which is higher than the amount offered by both the market average and companies from USA. It is also bigger than average of Technology industry. This high dividend yield might be a sign to worry about the future of the company so deeper analysis is needed.
About the ability of Garmin Ltd to maintain his current dividend of USD 2.04 per share, an amount that accounts for 4.22%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Garmin Ltd payout on ernings is currently 83.61%, which is higher than the market average, and companies of Technology industry, which are 40.24% and 45.15% respectively. Both figures show that Garmin Ltd can have problems to keep with his present dividend yield.
The payout on earnings should be complemented with the payout on cash flow since it is this latter amount the one which can be distributed to shareholders. Cash flow per share of Garmin Ltd is USD 1.42 per share, which is lower than the dividend per share paid by the company of USD 2.04, so the company does not generate enough cash to maintain his dividend in the future.
The following figure shows payout ratios over earnings and cashflow of Garmin Ltd, compared againt world market average, USA companies, Technology industry and Technology Hardware and Equip. sector companies. You might also need to check full financial report of Garmin Ltd.
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