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

Our stock screener has singled out RESMED INC (NYSE:RMD) as a promising choice for dividend investors. NYSE:RMD not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Evaluating Dividend: NYSE:RMD

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:RMD has been assigned a 7 for dividend:

• Compared to an average industry Dividend Yield of 2.92, RMD pays a better dividend. On top of this RMD pays more dividend than 94.39% 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.
• RMD pays out 30.39% of its income as dividend. This is a 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

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:RMD, the assigned 7 for health provides valuable insights:

• RMD has an Altman-Z score of 9.31. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
• RMD has a better Altman-Z score (9.31) than 87.76% of its industry peers.
• RMD has a debt to FCF ratio of 1.30. This is a very positive value and a sign of high solvency as it would only need 1.30 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.30, RMD belongs to the top of the industry, outperforming 90.31% of the companies in the same industry.
• A Debt/Equity ratio of 0.27 indicates that RMD is not too dependend on debt financing.
• A Current Ratio of 3.11 indicates that RMD has no problem at all paying its short term obligations.

Profitability Analysis for NYSE:RMD

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:RMD has earned a 8 out of 10:

• Looking at the Return On Assets, with a value of 12.89%, RMD belongs to the top of the industry, outperforming 95.92% of the companies in the same industry.
• RMD has a Return On Equity of 19.87%. This is amongst the best in the industry. RMD outperforms 94.39% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 16.09%, RMD belongs to the top of the industry, outperforming 96.94% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for RMD is significantly above the industry average of 8.50%.
• RMD has a better Profit Margin (19.77%) than 94.90% of its industry peers.
• RMD's Profit Margin has improved in the last couple of years.
• RMD has a Operating Margin of 26.98%. This is amongst the best in the industry. RMD outperforms 96.43% of its industry peers.
• RMD's Operating Margin has improved in the last couple of years.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

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.