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?
(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?
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.
(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.
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.
(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.
I can imagine, and probably not worth the effort if our holdings don't add up to much.
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