ResMed Raises Quarterly Dividend 10.0% to $0.66

ResMed Inc. raised its quarterly dividend to $0.66 per share from $0.60, an increase of 10.0%. The new rate equates to an annual dividend of $2.64. The latest payment went ex-dividend on August 20, 2026.

Why the dividend changed

ResMed did not attribute the increase to a single factor. It announced the higher payout alongside fiscal fourth-quarter results showing continued revenue growth, margin expansion and strong cash generation. Full-year revenue increased 10% to $5.7 billion, while free cash flow reached $1.6 billion, according to the company’s fourth-quarter results.

Chairman and Chief Executive Mick Farrell said that cash flow allowed ResMed to keep investing in innovation while returning capital to shareholders. The company also paired the dividend increase with guidance for greater capital returns through dividends and share repurchases in fiscal 2027. That positioning indicates the raise was part of a broader capital-allocation plan supported by operating cash generation, rather than a special distribution tied to a corporate restructuring.

ResMed’s recent portfolio moves reinforce that approach. The company agreed to sell its MatrixCare business to Frazier Healthcare Partners for $490 million in cash, subject to closing adjustments, and said the proceeds would support shareholder returns and general corporate purposes. MatrixCare had generated about $220 million of fiscal 2026 revenue and about $55 million of non-GAAP operating profit, according to the transaction filing. ResMed subsequently entered a $450 million accelerated share-repurchase agreement funded with MatrixCare sale proceeds and cash on hand, according to a September filing.

Dividend track record

The increase extends ResMed’s dividend-growth streak to 13 years. Its five-year dividend growth rate is 7.7% annualized, while the latest 10.0% increase is above that longer-term pace.

Recent payments show a pattern of annual step-ups. The quarterly rate remained at $0.53 through May 8, 2025, moved to $0.60 on August 14, 2025, and stayed there for the following three payments. It then rose to $0.66 for the payment with an August 20, 2026 ex-dividend date.

Full-year totals show growth accelerating in recent years. Annual dividends rose from $1.56 per share in 2020 to $1.62 in 2021, $1.72 in 2022 and $1.84 in 2023. The total reached $2.02 in 2024 and $2.26 in 2025. The annual increase was 7.0% in 2023, 9.8% in 2024 and 11.9% in 2025, establishing a progression of larger annual gains before the latest quarterly raise.

Is the dividend covered?

The dividend consumes 23% of earnings. That payout ratio indicates ResMed retains most of its reported profit for research, acquisitions, debt service, share repurchases and other corporate needs while funding the quarterly distribution.

SmarterDividends rates the dividend A with a safety score of 87, classified as very safe within the 80-100 range. The grade reflects the low earnings payout and the company’s capacity to fund the dividend without relying on nearly all of its profit. It does not guarantee future payments, which remain subject to board approval, as ResMed states in its annual report.

Yield and valuation

At a share price of $221.65, the annual dividend of $2.64 produces a forward yield of 1.19%. That is below the Healthcare sector median forward yield of 1.80%, so the shares provide less current dividend income than the sector benchmark despite the latest increase.

SmarterDividends’ fair-value estimate is $271.87, compared with the $221.65 share price. That represents 21% upside to fair value and produces an undervalued verdict. The valuation finding is separate from the dividend’s income profile: the forward yield remains below the sector median even after the 10.0% raise.

What to watch

The next quarterly results will show whether ResMed’s revenue growth, margins and cash generation continue to support its capital-return program after the MatrixCare disposal. Investors can also monitor how the divestiture changes the remaining software business and how management divides available cash among internal investment, acquisitions, repurchases and dividends.

The next board declaration is the key dividend-specific event. The latest listed ex-dividend date was August 20, 2026, and no later date is included here. Future declarations will determine whether the $0.66 quarterly rate continues and whether the 13-year growth streak extends.