Why NYSE:RMD qualifies as a good dividend investing stock.

RESMED INC (NYSE:RMD) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:RMD demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

How do we evaluate the Dividend for NYSE:RMD?

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:RMD earns a 7 out of 10:

• Compared to an average industry Dividend Yield of 2.99, RMD pays a better dividend. On top of this RMD pays more dividend than 94.06% of the companies listed in the same industry.
• RMD has paid a dividend for at least 10 years, which is a reliable track record.
• RMD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• 29.17% of the earnings are spent on dividend by RMD. This is a low number and sustainable payout ratio.
• RMD's earnings are growing more than its dividend. This makes the dividend growth sustainable.

What does the Health looks like for NYSE:RMD

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:RMD has earned a 7 out of 10:

• An Altman-Z score of 8.04 indicates that RMD is not in any danger for bankruptcy at the moment.
• RMD has a Altman-Z score of 8.04. This is amongst the best in the industry. RMD outperforms 90.10% of its industry peers.
• RMD has a debt to FCF ratio of 1.72. This is a very positive value and a sign of high solvency as it would only need 1.72 years to pay back of all of its debts.
• RMD's Debt to FCF ratio of 1.72 is amongst the best of the industry. RMD outperforms 91.09% of its industry peers.
• A Debt/Equity ratio of 0.32 indicates that RMD is not too dependend on debt financing.
• A Current Ratio of 2.99 indicates that RMD has no problem at all paying its short term obligations.

Profitability Assessment of NYSE:RMD

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:RMD, the assigned 8 is noteworthy for profitability:

• RMD's Return On Assets of 13.45% is amongst the best of the industry. RMD outperforms 96.53% of its industry peers.
• RMD has a Return On Equity of 21.33%. This is amongst the best in the industry. RMD outperforms 95.05% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 15.86%, RMD belongs to the top of the industry, outperforming 97.03% of the companies in the same industry.
• RMD has a Profit Margin of 20.72%. This is amongst the best in the industry. RMD outperforms 95.05% of its industry peers.
• In the last couple of years the Profit Margin of RMD has grown nicely.
• With an excellent Operating Margin value of 26.62%, RMD belongs to the best of the industry, outperforming 97.03% of the companies in the same industry.
• RMD's Operating Margin has improved in the last couple of years.

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For an up to date full fundamental analysis you can check the fundamental report of RMD

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.