Garmin Boosts Dividend 17% and Sets $500 Million Share Buyback

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.

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.