Yes, that Garmin (GRMN) — the GPS company that most folks think of as a dinosaur thanks to smartphone navigation programs.
But keep in mind that this firm does much more than those suction cup-mounted gadgets for your car. It is involved in both airplane and marine navigation systems, as well as dash-mounted systems built into autos like the Mercedes-Benz. The company also dabbles in pet location technology for lost dogs, as well as fitness apps for runners and bikers to monitor their performance and their exercise routes.
This diverse product catalog has allowed Garmin to stay stable lately. Though sales have flatlined, GMN had cash and marketable securities worth about $1.28 billion at the end of the last quarter — more than 18% of the company’s entire market value. The dividend is sustainable at about 65% of earnings per share, too.
In February, Garmin approved a $300 million share repurchase, which shows the company is committed to returning capital to shareholders. And longer-term, the late 2012 purchase of Sweden’s Nexus Marine is a prime example of how the company is trying to find growth in new areas of the navigation business.
With a lot of cash and with a steady payout, you could do worse than Garmin. Yes, shares are off about 13% in 2013 … but if it proves naysayers wrong, this stock will make it all back and then some.
Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.