Garmin Ltd (NASDAQ: GRMN)

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#1
What do you guys think of this stock? I am thinking of taking a long position for the medium term, like to hear your thoughts. I am especially interested in their avionics business, particularly their avionics packages for small business jets. They haven't been doing too badly, and P/E is decent.

What's your opinion?
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#1
What do you guys think of this stock? I am thinking of taking a long position for the medium term, like to hear your thoughts. I am especially interested in their avionics business, particularly their avionics packages for small business jets. They haven't been doing too badly, and P/E is decent.

What's your opinion?
Reply
#2
(16-09-2016, 04:34 PM)phandal Wrote: What do you guys think of this stock? I am thinking of taking a long position for the medium term, like to hear your thoughts. I am especially interested in their avionics business, particularly their avionics packages for small business jets. They haven't been doing too badly, and P/E is decent.

What's your opinion?

I have looked into the company a little while back mainly focusing on the fitness and outdoors segment. I am not too familiar with the avionics market and cannot really give much insight into the relative advantages Garmin possesses.

However, are the dividends subject to Swiss withholding taxes?
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#2
(16-09-2016, 04:34 PM)phandal Wrote: What do you guys think of this stock? I am thinking of taking a long position for the medium term, like to hear your thoughts. I am especially interested in their avionics business, particularly their avionics packages for small business jets. They haven't been doing too badly, and P/E is decent.

What's your opinion?

I have looked into the company a little while back mainly focusing on the fitness and outdoors segment. I am not too familiar with the avionics market and cannot really give much insight into the relative advantages Garmin possesses.

However, are the dividends subject to Swiss withholding taxes?
Reply
#3
Yes that's one of the concerns I have about it, if it's dutiable in both country of domicile and listing, then we only stand to receive 45.5% after withholding taxes. Asked my broker about it and he says he'll check with their US custodian on Monday.
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#3
Yes that's one of the concerns I have about it, if it's dutiable in both country of domicile and listing, then we only stand to receive 45.5% after withholding taxes. Asked my broker about it and he says he'll check with their US custodian on Monday.
Reply
#4
(18-09-2016, 02:43 AM)phandal Wrote: Yes that's one of the concerns I have about it, if it's dutiable in both country of domicile and listing, then we only stand to receive 45.5% after withholding taxes. Asked my broker about it and he says he'll check with their US custodian on Monday.

From what I understand, Singapore and Switzeland have a double taxation treaty which limits withholding taxes on dividends taxed at source to 15%. One of the factors that attracted me was the decent yield. At current prices, I think I will pass partially due to the withholding taxes.
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#4
(18-09-2016, 02:43 AM)phandal Wrote: Yes that's one of the concerns I have about it, if it's dutiable in both country of domicile and listing, then we only stand to receive 45.5% after withholding taxes. Asked my broker about it and he says he'll check with their US custodian on Monday.

From what I understand, Singapore and Switzeland have a double taxation treaty which limits withholding taxes on dividends taxed at source to 15%. One of the factors that attracted me was the decent yield. At current prices, I think I will pass partially due to the withholding taxes.
Reply
#5
My broker's US custodian says that the jurisdiction with the higher withholding tax (in this case Switzerland's 35%) will be levied, so no double taxation.
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#5
My broker's US custodian says that the jurisdiction with the higher withholding tax (in this case Switzerland's 35%) will be levied, so no double taxation.
Reply
#6
(19-09-2016, 05:28 PM)Pphandal Wrote: My broker's US custodian says that the jurisdiction with the higher withholding tax (in this case Switzerland's 35%) will be levied, so no double taxation.

I was referring to the Singapore - Switzeland double taxation treaty. 

https://www.iras.gov.sg/irashome/uploade...02012).pdf

Investments in Swiss companies by Singapore tax residents are granted a lower withholding tax rate on dividends of 15%. However, the full withholding tax of 35% will be withheld at source and it is up to the investor to request a refund of 20% from the Swiss tax authorities. The process to recover the excess tax withheld can be quite inconvenient.
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#6
(19-09-2016, 05:28 PM)Pphandal Wrote: My broker's US custodian says that the jurisdiction with the higher withholding tax (in this case Switzerland's 35%) will be levied, so no double taxation.

I was referring to the Singapore - Switzeland double taxation treaty. 

https://www.iras.gov.sg/irashome/uploade...02012).pdf

Investments in Swiss companies by Singapore tax residents are granted a lower withholding tax rate on dividends of 15%. However, the full withholding tax of 35% will be withheld at source and it is up to the investor to request a refund of 20% from the Swiss tax authorities. The process to recover the excess tax withheld can be quite inconvenient.
Reply
#7
I can imagine, and probably not worth the effort if our holdings don't add up to much.
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#7
I can imagine, and probably not worth the effort if our holdings don't add up to much.
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#8
Article comparing GoPro & Garmin.

What the author didn't factor in, however is that Garmin already has some assured growth, especially in the aviation services, being the default avionics suite of 2 new Very Light Jets with backorders -- the Cirrus SF50 and the Hondajet.

http://www.fool.com/investing/2016/09/20...yptr=yahoo
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#8
Article comparing GoPro & Garmin.

What the author didn't factor in, however is that Garmin already has some assured growth, especially in the aviation services, being the default avionics suite of 2 new Very Light Jets with backorders -- the Cirrus SF50 and the Hondajet.

http://www.fool.com/investing/2016/09/20...yptr=yahoo
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