Uncovering Dividend Opportunities with NYSE:RMD.

Take a closer look at RESMED INC (NYSE:RMD), a stock of interest to dividend investors uncovered by our stock screener. NYSE:RMD excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Assessing Dividend for NYSE: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. NYSE:RMD has achieved a 7 out of 10:

• RMD's Dividend Yield is rather good when compared to the industry average which is at 1.69. RMD pays more dividend than 93.72% of the companies in the same industry.
• RMD has been paying a dividend for at least 10 years, so it has 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 28.85% 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.

Health Assessment of 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:

• RMD has an Altman-Z score of 11.07. 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 11.07, RMD belongs to the top of the industry, outperforming 87.96% of the companies in the same industry.
• The Debt to FCF ratio of RMD is 0.94, which is an excellent value as it means it would take RMD, only 0.94 years of fcf income to pay off all of its debts.
• RMD's Debt to FCF ratio of 0.94 is amongst the best of the industry. RMD outperforms 90.05% of its industry peers.
• RMD has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
• RMD has a Current Ratio of 3.04. This indicates that RMD is financially healthy and has no problem in meeting its short term obligations.

Profitability Assessment of 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:

• With an excellent Return On Assets value of 14.06%, RMD belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
• The Return On Equity of RMD (20.70%) is better than 95.29% of its industry peers.
• RMD has a Return On Invested Capital of 17.35%. This is amongst the best in the industry. RMD outperforms 97.38% 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 8.44%.
• With an excellent Profit Margin value of 20.91%, RMD belongs to the best of the industry, outperforming 95.29% of the companies in the same industry.
• RMD's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 28.12%, RMD belongs to the top of the industry, outperforming 96.34% 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.

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.