ResMed Inc. (NYSE:RMD) Shares Set to Pay Quarterly Dividend of $0.66

Key Points

• ResMed declared a quarterly dividend of $0.66 per share, payable December 17 to shareholders of record November 12. The dividend equates to $2.64 annually and a 1.0% yield.
• The dividend appears well covered, with a 25% payout ratio, while ResMed has raised its dividend for 13 consecutive years. Analysts expect a future payout ratio of approximately 20%.
• ResMed exceeded quarterly earnings expectations, reporting $2.91 in EPS and $1.41 billion in revenue, with revenue up 5.9% year over year. Despite seven Buy ratings, the analyst consensus remains Hold, with a $246.31 price target.

ResMed Inc. (NYSE:RMD - Get Free Report) announced a quarterly dividend on Thursday, October 29th. Shareholders of record on Thursday, November 12th will be given a dividend of $0.66 per share by the medical equipment provider on Thursday, December 17th. This represents a $2.64 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Thursday, November 12th.

ResMed has increased its dividend payment by an average of 0.1% per year over the last three years and has increased its dividend every year for the last 13 years. ResMed has a payout ratio of 25.0% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect ResMed to earn $13.19 per share next year, which means the company should continue to be able to cover its $2.64 annual dividend with an expected future payout ratio of 20.0%.

ResMed Stock Up 0.7%

Shares of ResMed stock opened at $252.00 on Friday. The stock's 50-day moving average is $231.83 and its 200 day moving average is $225.57. ResMed has a one year low of $180.26 and a one year high of $277.67. The firm has a market cap of $35.44 billion, a price-to-earnings ratio of 24.16, a PEG ratio of 1.53 and a beta of 0.75. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.10 and a quick ratio of 2.42.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings data on Thursday, October 29th. The medical equipment provider reported $2.91 EPS for the quarter, topping analysts' consensus estimates of $2.67 by $0.24. The firm had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.39 billion. ResMed had a return on equity of 25.58% and a net margin of 26.94%. The company's revenue for the quarter was up 5.9% on a year-over-year basis. During the same period in the previous year, the company posted $2.55 EPS. Equities research analysts anticipate that ResMed will post 12.11 EPS for the current year.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the company. Wells Fargo & Company decreased their target price on ResMed from $225.00 to $215.00 and set an "equal weight" rating for the company in a research report on Friday, August 7th. Jefferies Financial Group cut their price target on shares of ResMed from $240.00 to $225.00 and set a "hold" rating for the company in a research note on Friday, July 10th. Weiss Ratings upgraded shares of ResMed from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 8th. Piper Sandler reduced their target price on shares of ResMed from $233.00 to $225.00 and set a "neutral" rating on the stock in a report on Friday, August 7th. Finally, Robert W. Baird set a $213.00 price target on shares of ResMed in a research report on Friday, August 7th. Seven research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $246.31.

About ResMed

ResMed Inc is a medical equipment and software company that develops solutions for sleep-disordered breathing, respiratory conditions and other chronic diseases. The company is best known for its positive airway pressure (PAP) devices used to treat obstructive sleep apnea, along with masks, accessories and related patient support services.

ResMed also provides cloud-connected health technology, including remote-monitoring platforms and software used by healthcare providers, medical equipment suppliers and care organizations.

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