Time is running short for passive income investors wanting to bank the all-time high ResMed Inc (ASX: RMD) dividend.
Unlike the majority of ASX income stocks, which pay dividends twice a year, the S&P/ASX 200 Index (ASX: XJO) sleep disorder treatment company pays out quarterly dividends.
Here's what's happening with the upcoming dividend.
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ResMed dividend soars alongside surge in income
The record ResMed dividend was declared when the healthcare company reported its December quarterly results on 31 January.
For the three months to 31 December, the company reported revenue of US$1.3 billion. That was up 10% year over year, driven by growing demand for its sleep devices and masks and growth in its Residential Care Software business.
ResMed also achieved a 52% increase in income from operation to US$417.2 million. Non-GAAP net income of US$358.3 million was up 29% from the prior corresponding quarter.
During the quarter, ResMed paid $78 million in dividends to its shareholders.
As for the upcoming ResMed dividend in question, the board declared an unfranked quarterly cash dividend of 5.3 US cents per share. In Aussie currency, that equates to around 8.5 cents and represents an increase of around 10% over the dividend paid for the same quarter last year.
ASX investors will receive their ResMed dividend on 13 February, the record date.
If you're hoping to grab that passive income payout, you'll need to own shares at market close on Tuesday, 11 February. ResMed shares trade ex-dividend on 12 February.
What did management say?
Commenting on the company's strong quarterly results that enabled a record ResMed dividend payout, CEO Mick Farrell said on the day:
Our second quarter fiscal year 2025 top-line growth, margin expansion, and double-digit EPS growth were the result of increased demand for our sleep health and breathing health products and digital health solutions that people love, as well as our laser-focus on operational excellence.
We delivered 10% year-over-year revenue growth, 230 bps improvement in gross margin, and $309 million of operating cash flow.
Atop the ResMed dividend, is the stock a good buy?
Buying a stock simply for its passive income can backfire if the company's share price goes backwards over the year.
So, atop the pending ResMed dividend, is the ASX 200 healthcare stock a good buy?
Taking a look in the rearview, the ResMed share price has gained an impressive 32.0% over the past 12 months.
As for what lies ahead, Goldman Sachs has a bullish outlook for the company.
Following ResMed's quarterly update, the broker noted that "the result reinforced the various growth levers which RMD has greater control over".
Goldman Sachs reiterated its buy rating on ResMed shares with a $49.00 price target. That represents a potential upside of almost 27% from the current $38.64 a share.
