Why NYSE:RMD provides a good dividend, while having solid fundamentals.

Unearth the potential of RESMED INC (NYSE:RMD) as a dividend stock recommended by our stock screening tool. NYSE:RMD maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Evaluating Dividend: 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 1.63, RMD pays a better dividend. On top of this RMD pays more dividend than 94.47% 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 their dividend for at least 10 years, which is a reliable track record.
• RMD pays out 29.17% of its income as dividend. This is a sustainable payout ratio.
• The dividend of RMD is growing, but earnings are growing more, so the dividend growth is sustainable.

Assessing Health for NYSE:RMD

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:RMD, the assigned 7 reflects its health status:

• An Altman-Z score of 8.44 indicates that RMD is not in any danger for bankruptcy at the moment.
• RMD's Altman-Z score of 8.44 is amongst the best of the industry. RMD outperforms 88.44% 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.
• With an excellent Debt to FCF ratio value of 1.72, RMD belongs to the best of the industry, outperforming 90.95% of the companies in the same industry.
• A Debt/Equity ratio of 0.32 indicates that RMD is not too dependend on debt financing.
• RMD has a Current Ratio of 2.99. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.

Profitability Assessment of NYSE:RMD

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:RMD was assigned a score of 8 for profitability:

• RMD's Return On Assets of 13.45% is amongst the best of the industry. RMD outperforms 95.98% of its industry peers.
• RMD's Return On Equity of 21.33% is amongst the best of the industry. RMD outperforms 94.47% of its industry peers.
• The Return On Invested Capital of RMD (15.86%) is better than 96.48% of its industry peers.
• RMD has a Profit Margin of 20.72%. This is amongst the best in the industry. RMD outperforms 94.97% of its industry peers.
• RMD's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 26.62%, RMD belongs to the best of the industry, outperforming 96.98% of the companies in the same industry.
• In the last couple of years the Operating Margin of RMD has grown nicely.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of RMD contains the most current fundamental analsysis.

Keep in mind

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.