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— Warren Buffett

Garmin stock delivered a strong five-year total return for investors who bought in late 2021 and held through October 2026. Using a buy-and-hold framework that includes dividend reinvestment, a $10,000 investment in Garmin Ltd (NYSE: GRMN) would have grown to $20,968.28, illustrating how share-price appreciation and dividends can work together over a multiyear holding period.

The broader point is straightforward: long-term equity returns are not driven by price alone. For a company such as Garmin, total return reflects three linked components: the starting valuation, the operating performance that supports the stock price over time, and the cash returned to shareholders through dividends. Looking at all three gives a more useful picture than focusing only on where the shares traded at the beginning and end of the period.

GRMN 5-Year Return Details

GRMN 5-Year Return Details
Start date:	11/02/2021	$10,000 11/02/2021   $20,968 10/30/2026
End date:	10/30/2026
Start price/share:	$144.25
End price/share:	$272.67
Starting shares:	69.32
Ending shares:	76.89
Dividends reinvested/share:	$15.13
Total return:	109.66%
Average annual return:	15.98%
Starting investment:	$10,000.00
Ending investment:	$20,968.28

Over the period from 11/02/2021 to 10/30/2026, Garmin generated a 109.66% total return, equivalent to an average annual return of 15.98% with dividends reinvested. In dollar terms, the investment more than doubled. That outcome reflects both a substantial increase in the share price and the incremental benefit of owning more shares over time through dividend reinvestment.

What Drove The Return

The result can be broken into two principal sources:

• Capital appreciation: the share price rose from $144.25 to $272.67.
• Dividend compounding: $15.13 per share in dividends was reinvested, increasing the share count from 69.32 to 76.89.

This distinction matters. A stock can post strong headline gains while offering limited cash return, or it can generate a meaningful portion of total return from dividends. In Garmin’s case, both factors contributed. The reinvestment effect was not the primary driver, but it still added to ending value by steadily expanding the ownership stake.

[These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

Why Dividend Reinvestment Changes The Outcome

Dividend reinvestment is often treated as a secondary detail, but over longer periods it can materially affect realized returns. Each dividend payment buys incremental shares, and those shares in turn become eligible for future dividends. That creates a compounding effect that is easy to underestimate when attention stays fixed on price charts alone.

Here, the original investment bought 69.32 shares. Reinvestment lifted that figure to 76.89 shares by the end of the measurement period. That higher share count amplified the benefit of Garmin’s price appreciation because more shares participated in the later-stage gains.

Current Yield And Yield On Cost

Based on the most recent annualized dividend rate of $4.20 per share, GRMN has a current yield of approximately 1.54% using the ending share price of $272.67. That is the standard forward-looking yield measure most commonly cited in the market.

A different lens is yield on cost, which compares the current annualized dividend to the original purchase price. Using the same $4.20 annual dividend and the initial share price of $144.25, Garmin’s yield on cost comes to about 2.91%.

That figure is useful because it shows how dividend growth and a favorable entry price can improve the income generated on the original capital committed. It does not replace current yield for valuation purposes, but it does help illustrate the economics of long-duration ownership.

Key Takeaways From Garmin’s 5-Year Performance

• Total return matters more than price return alone. Garmin’s outcome was strengthened by both appreciation and dividends.
• Reinvestment increased share count. Ending shares rose from 69.32 to 76.89.
• Compounding becomes more visible over time. Five years was long enough for reinvested dividends to make a measurable difference.
• Yield on cost can improve meaningfully for long-term holders. On the original purchase price, the current dividend rate represents about 2.91%.

For investors studying Garmin stock through a buy-and-hold lens, the five-year record shows the value of pairing business ownership thinking with total-return analysis. A multiyear holding period can reward patience when the underlying company continues to support both market value and shareholder distributions.