ResMed Inc has updated the foreign exchange rate for its forthcoming dividend payable to ASX-listed CDIs, setting the Australian dollar payout at 9.24 cents per CDI. This adjustment reflects the latest USD to AUD exchange rate and carries important tax implications for investors.
- Dividend of USD 0.06 per share declared for quarter ending June 2025
- Dividend payable in AUD at 0.0924 per CDI based on updated FX rate of 0.6497 USD/AUD
- Record date set for 14 August 2025, payment date on 18 September 2025
- Default US withholding tax of 30%, reducible to 15% under US-Australia tax treaty
- No securities plan or franking attached to this dividend
Dividend Update and FX Rate Adjustment
ResMed Inc, a global leader in medical devices, has issued an update regarding the foreign exchange rate applicable to its upcoming ordinary dividend for holders of its Chess Depositary Instruments (CDIs) trading on the Australian Securities Exchange (ASX). The dividend, declared at USD 0.06 per share for the quarter ending 30 June 2025, will be paid in Australian dollars at a rate of AUD 0.0924 per CDI. This reflects the revised exchange rate of 0.6497 US dollars per Australian dollar, as of the record date on 14 August 2025.
The adjustment follows the company's previous announcement on 1 August 2025 and ensures that Australian investors receive an accurate AUD equivalent based on current currency valuations. The payment date for this dividend is scheduled for 18 September 2025.
Tax Implications for Australian Investors
Investors should note the withholding tax considerations attached to this dividend. The default US withholding tax rate on dividends paid to Australian residents is 30%. However, under the existing tax treaty between the United States and Australia, this rate can be halved to 15% if the beneficial owner submits the appropriate documentation, such as Form W-8BEN or W-8BEN-E, to ResMed's Australian share registry, Computershare Investor Services Pty Limited.
This tax treaty benefit is significant for Australian CDI holders seeking to maximise their net dividend income. The company has not attached any franking credits to this dividend, meaning the entire payment is unfranked and subject to withholding tax.
Broader Context and Investor Considerations
ResMed's dividend announcement underscores the importance of currency fluctuations in cross-border investments, especially for holders of CDIs that represent US-listed shares on the ASX. The 10, 1 ratio between CDIs and NYSE shares means that the dividend payment in AUD is carefully calibrated to reflect both the underlying USD dividend and prevailing exchange rates.
While the company has confirmed no approvals or external conditions are required for this dividend payment, investors should remain aware of potential currency volatility between the record date and payment date, which could affect the final AUD amount received.
Moreover, the absence of a securities plan for dividends and the unfranked nature of the payment highlight that this dividend is a straightforward cash distribution without additional tax credits or reinvestment options.
Bottom Line?
As ResMed finalises its dividend payout amid currency shifts and tax nuances, investors should prepare for the next quarterly update and monitor FX trends closely.
Questions in the middle?
- Will further foreign exchange rate fluctuations affect the dividend amount before payment?
- How many Australian CDI holders will submit the necessary forms to benefit from the reduced withholding tax rate?
- What impact might this dividend update have on ResMed’s share price and investor sentiment on the ASX?