Garmin dividend
Garmin pays a $4.20 annual dividend per share, and its 2025 free cash flow was $1,362,913 thousand, or 18.8% of revenue. Garmin’s more conservative real free cash flow was $1,196,910 thousand, or 16.5% of revenue, after stock pay.
How much does Garmin pay its shareholders?
The board authorized up to $500 million of repurchases in February 2026. In June, shareholders approved a $4.20 annual dividend paid in four installments. The dividend is a commitment; the buyback authorization gives management flexibility. Garmin’s cash plan has worked well enough to support both growth and returns, but the public figures still do not show which individual investments created the most value.
The dividend starts from the supplied current rate of $4.20. The base case grows it to $4.60, then $5.00 and $5.40, supported by $1.363 billion of 2025 free cash flow and substantial net cash. The bear case freezes the rate as costs and investment weaken cash conversion. The bull case reaches $5.00, $5.80 and $6.70, requiring sustained earnings strength.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 2,189 (1,949 / 2,354) | 2,384 (1,971 / 2,635) | 2,595 (2,002 / 2,951) |
| Dividends per share | 4.60 (4.20 / 5.00) | 5.00 (4.20 / 5.80) | 5.40 (4.20 / 6.70) |
| Price to earnings | 25.00 (19.00 / 28.00) | 23.00 (17.00 / 28.00) | 22.00 (15.00 / 27.00) |
Does Garmin’s cash cover its dividend?
Free cash flow is cash from operations minus spending on property and equipment. Garmin’s free cash flow was $1,362,913 thousand in 2025, or 18.8% of revenue. A more conservative measure subtracts stock pay, which compensates employees with shares and can dilute shareholders. That real free cash flow was $1,196,910 thousand, or 16.5% of revenue.
Dividends were Garmin’s largest recurring shareholder payment, while buybacks remained discretionary. In one year shown, shareholder payments exceeded free cash flow, which Garmin could cover from saved cash and liquid investments. That is sustainable only if future operations replenish the reserves.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 1,362,913 | 1,238,900 | 1,182,741 | 543,973 | 704,782 |
| − Dividends paid | 663,885 | 572,355 | 558,769 | 679,096 | 491,457 |
| − Share buybacks | 181,011 | 62,348 | 98,988 | 201,012 | 0 |
| = Free cash flow not paid out | 518,017 | 604,197 | 524,984 | 213,325 | |
| Paid out, % of free cash flow | 62.0% | 51.2% | 55.6% | 161.8% | 69.7% |
What this means. In 2022, the company paid shareholders more cash than it generated because five quarterly dividends fell in that year, so it used money saved earlier.
What could change Garmin’s dividend?
The forecast would move toward the bear case if 2027–2029 results showed weaker Fitness sell-through, discounting, persistent memory inflation or a delayed Mercedes ramp. High inventory and Thailand ramp costs would also pressure free cash flow and buybacks.
What is Garmin’s dividend yield against its share price?
| Today (Oct 18, 2026) | |
|---|---|
| Share price | 284.79 |
| Free cash flow yield (calculated) | 2.5% |
| Dividend yield (calculated) | 1.5% |
What this means. The next-twelve-month price-to-earnings ratio uses analysts’ expected profit, so it can change and may be wrong.