Why RESMED INC (NYSE:RMD) is a Top Pick for Dividend Investors.

Discover RESMED INC (NYSE:RMD)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. RMD showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

A Closer Look at Dividend for RMD

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. RMD has achieved a 7 out of 10:

• Compared to an average industry Dividend Yield of 1.94, RMD pays a better dividend. On top of this RMD pays more dividend than 93.16% 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.
• 23.76% of the earnings are spent on dividend by RMD. This is a low number and sustainable payout ratio.
• The dividend of RMD is growing, but earnings are growing more, so the dividend growth is sustainable.

Deciphering RMD's Health Rating

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

• RMD has an Altman-Z score of 12.83. This indicates that RMD is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 12.83, RMD belongs to the top of the industry, outperforming 93.68% of the companies in the same industry.
• The Debt to FCF ratio of RMD is 0.49, which is an excellent value as it means it would take RMD, only 0.49 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.49, RMD belongs to the top of the industry, outperforming 93.68% of the companies in the same industry.
• RMD has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
• RMD has a Current Ratio of 3.33. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 2.29 indicates that RMD has no problem at all paying its short term obligations.

Looking at the Profitability

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. RMD has earned a 9 out of 10:

• Looking at the Return On Assets, with a value of 17.49%, RMD belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
• RMD has a better Return On Equity (23.77%) than 95.79% of its industry peers.
• RMD has a better Return On Invested Capital (20.12%) than 99.47% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for RMD is significantly above the industry average of 7.68%.
• The 3 year average ROIC (17.61%) for RMD is below the current ROIC(20.12%), indicating increased profibility in the last year.
• The Profit Margin of RMD (25.35%) is better than 95.26% of its industry peers.
• RMD's Profit Margin has improved in the last couple of years.
• RMD has a Operating Margin of 31.67%. This is amongst the best in the industry. RMD outperforms 98.95% of its industry peers.
• In the last couple of years the Operating Margin of RMD has grown nicely.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.