Uncovering Dividend Opportunities with NYSE:RMD.

Our stock screening tool has identified RESMED INC (NYSE:RMD) as a strong dividend contender with robust fundamentals. NYSE:RMD exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Assessing Dividend Metrics for NYSE:RMD

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:RMD has received a 7 out of 10:

• RMD's Dividend Yield is rather good when compared to the industry average which is at 2.56. RMD pays more dividend than 94.03% 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.
• 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.

Deciphering NYSE:RMD's Health Rating

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 8.48 indicates that RMD is not in any danger for bankruptcy at the moment.
• RMD's Altman-Z score of 8.48 is amongst the best of the industry. RMD outperforms 88.06% of its industry peers.
• The Debt to FCF ratio of RMD is 1.72, which is an excellent value as it means it would take RMD, only 1.72 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 1.72, RMD belongs to the best of the industry, outperforming 91.04% 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.

What does the Profitability looks like for NYSE:RMD

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:RMD, the assigned 8 is a significant indicator of profitability:

• RMD has a Return On Assets of 13.45%. This is amongst the best in the industry. RMD outperforms 96.02% of its industry peers.
• With an excellent Return On Equity value of 21.33%, RMD belongs to the best of the industry, outperforming 94.53% of the companies in the same industry.
• The Return On Invested Capital of RMD (15.86%) is better than 96.52% of its industry peers.
• RMD has a better Profit Margin (20.72%) than 95.02% of its industry peers.
• RMD's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 26.62%, RMD belongs to the top of the industry, outperforming 97.01% 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.

Check the latest full fundamental report of RMD for a complete fundamental analysis.

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.