Garmin Limited (GRMN)

Generates 50% or so of revenue from OEM GPS units in Chrysler and Jeep. Have been spending a lot of money on innovation. That is a good thing if the innovation works, but is a bit of a wildcard. A lot of the innovations they are coming out with are wrist wear type of devices, but a lot of that can be done with your smart phone. 5% dividend yield.

Generates about 50% of their revenue from selling GPS units to OEM car manufacturers. That part of their business has been struggling, and is worrisome because it is such a large part of where their revenues come from. Have recently been spending money on innovations, and coming out with wearable devices. The challenge is that innovation is quite costly. Their free cash flow is down 10%-12% over the last few years. His biggest concern is that they are channelling their investments and focus on wearables including watches. Apple (AAPL-Q) and other smart phones can do all of this, and he doesn’t want to be competing with the Apple brand.

GPS technology. He was looking for a technology play with a good yield. Likes their Marine, Fitness and other divisions. Feels that the GPS market as a whole is going to be huge. They are reinventing their product array and it is a really, really strong company. Lots of cash. Yield of 4.1% with a 60% payout ratio.