Is NYSE:RMD a Good Fit for Dividend Investing?

RESMED INC (NYSE:RMD) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:RMD scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Evaluating Dividend: NYSE:RMD

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:RMD has been awarded a 7 for its dividend quality:

• RMD's Dividend Yield is rather good when compared to the industry average which is at 2.78. RMD pays more dividend than 94.53% of the companies 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 28.78% 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.

Deciphering NYSE:RMD's Health Rating

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 6 out of 10:

• An Altman-Z score of 7.13 indicates that RMD is not in any danger for bankruptcy at the moment.
• RMD's Altman-Z score of 7.13 is amongst the best of the industry. RMD outperforms 87.06% of its industry peers.
• RMD has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as RMD would need 2.58 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 2.58, RMD belongs to the best of the industry, outperforming 92.04% of the companies in the same industry.
• RMD has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 3.12 indicates that RMD has no problem at all paying its short term obligations.

What does the Profitability looks like for 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:

• Looking at the Return On Assets, with a value of 13.29%, RMD belongs to the top of the industry, outperforming 96.52% of the companies in the same industry.
• RMD has a better Return On Equity (21.73%) than 96.02% of its industry peers.
• RMD has a better Return On Invested Capital (15.62%) than 96.52% of its industry peers.
• RMD has a better Profit Margin (21.25%) than 95.02% of its industry peers.
• In the last couple of years the Profit Margin of RMD has grown nicely.
• Looking at the Operating Margin, with a value of 27.26%, RMD belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
• RMD's Operating Margin has improved in the last couple of years.

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.

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.