ResMed Sets Dividend Payment of USD 0.053 Per Share for Q4 2024

Dividend Announcement Overview

ResMed Inc., a global leader in medical devices and healthcare solutions, has declared its quarterly ordinary dividend for holders of its Chess Depositary Instruments (CDIs) traded on the Australian Securities Exchange (ASX). The dividend amount is set at USD 0.053 per share, reflecting the company’s ongoing commitment to returning value to its investors.

The ex-dividend date is scheduled for 12 February 2025, with the record date following on 13 February 2025. Shareholders registered by the record date will be eligible to receive the dividend payment, which is expected to be disbursed on 20 March 2025.

Dividend Mechanics and Currency Considerations

ResMed’s dividend is paid in US dollars, consistent with its primary listing on the New York Stock Exchange (NYSE). For ASX CDI holders, the dividend will be converted into Australian dollars based on the exchange rate prevailing on the record date. The company’s CDIs are structured on a 10:1 ratio relative to its NYSE-listed shares, meaning each CDI represents one-tenth of a US common share.

Investors should note that the AUD equivalent of the dividend is currently estimated and subject to fluctuations in currency markets. This introduces an element of variability in the actual dividend amount received by Australian investors, depending on exchange rate movements between the record and payment dates.

Tax and Regulatory Details

The dividend is unfranked, with no Australian franking credits attached, and subject to a 30% withholding tax rate. ResMed has confirmed that no additional approvals, such as security holder or court approvals, are required for this dividend distribution. This straightforward regulatory position underscores the routine nature of this quarterly payment.

Context and Market Implications

This dividend announcement aligns with ResMed’s consistent track record of shareholder returns, reflecting stable earnings and cash flow generation in the medical devices sector. For investors, the dividend provides a tangible income stream amid ongoing market volatility, particularly in healthcare technology stocks.

Given the company’s exposure to currency risk through its US dollar-denominated dividend, investors should monitor exchange rate trends closely as the payment date approaches. The dividend also serves as a barometer of ResMed’s financial health and confidence in its growth prospects heading into 2025.