The Dynamic Dividend

Garmin Pushes Yield Over 4% — For Now

Garmin (GRMN) will recommend an annual dividend rate of $1.80 per share at its shareholders meeting in June, the satellite navigation giant announced within this morning’s impressive fourth quarter earnings release.

The new rate ($0.45 per share on a quarterly basis) would be a 12.5% improvement over the $0.40 per share the company has paid via regular dividends in recent quarters. Garmin had declared dividends totaling $2.00 per share over the last 12 months, but $0.40 per share was attributed to an inflated first quarter payout.

Shares of GRMN closed yesterday’s session trading at $44.69, where they now feature a 4.03% dividend yield. That attractive yield will be very short-lived, however, as the stock is surging in pre-market trading. Already up 39% in the past year — including a 13% gain in 2012 — the stock is trading in the $50.00 (+11.88%) range as the opening bell approaches. Buyers at that level would be locking in a 3.60% yield.