ResMed (RMD) Raises Dividend 10% Amid Ventilator Recall

Dividend Increase and Buyback Completion

In early August 2026, ResMed Inc. (RMD) reported higher fourth-quarter and full-year sales and earnings. The company also raised its quarterly dividend to US$0.66 per share, a 10% increase from the previous level. Additionally, ResMed confirmed the completion of a US$1.40 billion share repurchase program that has retired approximately 7.92% of its shares since 2014. These actions underscore the company's commitment to returning capital to shareholders, supported by its recurring cash generation from sleep therapy and digital health platforms.

Ventilator Recall and Outlook

However, management flagged a softer outlook due to suspended ventilator sales following an FDA Class 1 recall. This regulatory action introduces near-term uncertainty and highlights potential risks to revenue and earnings. The company's broader sleep-health and digital offerings are expected to mitigate some of the impact, but the recall remains a key overhang.

Financial Projections

ResMed's long-term narrative projects US$6.5 billion in revenue and US$1.8 billion in earnings by 2029. Achieving this would require a 5.4% annual revenue growth rate and an increase of about US$0.3 billion in earnings from the current US$1.5 billion. Some optimistic analyst estimates already align with these targets, but the recall-related risks may challenge those assumptions.

What it means for income investors

For income-focused investors, the dividend increase and completed buyback demonstrate financial strength, but the ventilator recall adds uncertainty to future earnings. The sustainability of dividend growth will depend on the performance of ResMed's core sleep and digital health segments.

Reporting based on: simplywall.st. Figures verified against market data where available.