■ Increase · August 12, 2026
ResMed (RMD) Raises Dividend 10% Amid Mixed Share Performance
ResMed increased its quarterly dividend by 10% to $0.66 per share, while shares trade below analyst targets. The company's recent acquisitions aim to expand its sleep health funnel.
Dividend Increase and Recent Performance
ResMed (RMD) declared a quarterly dividend of $0.66 per share, a 10% increase from the prior payout. The announcement accompanied the company's latest earnings and buyback update. Over the past 30 days, ResMed shares have gained 10.29%, and over 90 days, they have risen 11.10%. However, year-to-date performance is down 8.16%, and the one-year total shareholder return has declined 19.86%. Over three years, the total shareholder return stands at 26.27%, indicating that longer-term holders have fared better than recent buyers.
Valuation and Growth Drivers
ResMed currently trades at approximately $224.84, which is about 10% below the average analyst price target. Based on a widely followed narrative, the fair value is estimated at $247.93, implying a modest discount of roughly 10%. A deeper intrinsic value assessment suggests a discount of about 31% from a fair value estimate. The company's strategic investments, including acquisitions of VirtuOx, Ectosense, and Somnoware, are aimed at expanding the diagnosis and treatment funnel for sleep apnea and respiratory conditions. These moves are expected to support long-term revenue growth by capturing a larger share of the underpenetrated global market.
Risks and Considerations
Potential risks include ventilator component constraints that could impact earnings, and the possible return of Philips Respironics, which might intensify competition in 2027. The mixed sentiment around ResMed suggests that investors should review the underlying data to form their own view. For those interested in dividend income, ResMed's dividend calculator and dividend history provide additional details.
What it means for income investors
The 10% dividend increase reflects ResMed's commitment to returning cash to shareholders, even as the stock price has underperformed over the past year. The current valuation, below analyst targets, may offer a more favorable entry point for income-focused investors, though potential risks remain. As always, individual circumstances should guide investment decisions.
Reporting based on: simplywall.st. Figures verified against market data where available.