Garmin Raises Quarterly Dividend 16.7% to $1.05

Garmin Ltd. raised its quarterly dividend 16.7% to $1.05 per share from $0.90, taking the annual rate to $4.20. Shares first traded ex-dividend at the higher rate on June 15, 2026, and again on September 11, 2026. The next ex-dividend date is December 11, 2026.

Why the dividend changed

Garmin shareholders approved the annual cash dividend under Swiss corporate law, with the distribution divided into four equal quarterly installments. The declaration did not provide a stand-alone explanation for the increase.

The operating backdrop provides the clearest context. Garmin reported record full-year revenue and profit for 2025, with revenue rising 15% to $7.25 billion and operating income increasing 18% to $1.88 billion. All five business segments produced record annual revenue. Management presented the proposed dividend increase alongside a new $500 million share-repurchase authorization, placing both actions within a broader capital-return program supported by higher profit and cash generation. Garmin’s full-year results show that free cash flow reached about $1.36 billion in 2025.

Subsequent results strengthened that financial backdrop. Second-quarter revenue increased 11% to about $2.02 billion, while operating income rose 30% to $616 million. Garmin generated $404 million of operating cash flow and $276 million of free cash flow during the quarter and ended it with about $4.4 billion in cash and marketable securities. Management raised full-year guidance to about $8.05 billion of revenue and pro forma earnings of $10.00 per share, citing strong first-half performance. The second-quarter release also noted the completed acquisitions of TrainingPeaks and TrainHeroic.

Dividend track record

The increase extends Garmin’s dividend-growth streak to 8 consecutive years. The payment record shows a step-up pattern rather than identical annual increases. Quarterly payments were $0.75 on the December 13, 2024, and March 14, 2025, ex-dividend dates, then moved to $0.90 beginning with the June 16, 2025, ex-dividend date. The rate remained $0.90 through March 13, 2026, before reaching $1.05 in June and September 2026.

Annual totals show how that pattern affected shareholder income. The dividend totaled $2.40 per share in 2020, then rose 9.2% in both 2021 and 2022, reaching $2.86. Growth slowed to 2.1% in both 2023 and 2024, when the annual total reached $2.98. The total then rose 15.8% to $3.45 in 2025. The latest 16.7% quarterly increase therefore follows a period in which dividend growth accelerated after two years of smaller advances. The 5-year dividend-growth rate is 8.1% annual growth.

Is the dividend covered?

Garmin’s dividend consumes 39% of earnings. That payout ratio indicates earnings cover the distribution while leaving a majority of profit available for research, acquisitions, repurchases and balance-sheet needs.

SmarterDividends rates the dividend A, with a safety score of 81. The grade means the dividend is considered very safe within the scoring range of 80 to 100. The combination of the 39% earnings payout ratio, recent profit growth and Garmin’s cash position supports that assessment, although continued coverage depends on operating results and capital demands across its five business segments.

Yield and valuation

At a share price of $287.54, Garmin’s forward dividend yield is 1.46%. That is slightly above the Technology sector median forward yield of 1.38%, although the difference is modest. The shares have recorded a 28.1% gain over one year, which limits the income yield despite the higher dividend rate.

SmarterDividends estimates fair value at $223.69 and classifies the shares as overvalued. The estimate represents 18% downside from the current share price. The valuation measure is separate from dividend safety: the A grade addresses the likelihood of the payment being maintained, while the fair-value verdict compares the share price with estimated underlying value.

What to watch

The next scheduled ex-dividend date is December 11, 2026. Investors will also receive Garmin’s third-quarter results before the market opens on October 28, 2026, followed by management’s conference call, according to the company’s earnings-call notice.

The report will provide an update on Garmin’s raised revenue and earnings guidance, cash generation and segment performance. It will also show how the TrainingPeaks and TrainHeroic acquisitions are affecting investment and capital allocation. Those items will provide the next evidence on whether operating performance remains consistent with the current dividend coverage.