ResMed Revises FX Rate Ahead of December Dividend Payment
ResMed Inc has updated the foreign exchange rate for its upcoming dividend payable to ASX CDI holders, impacting the Australian dollar amount investors will receive.
- Dividend declared at USD 0.06 per share
- Updated FX rate of 0.6529 USD per AUD for dividend conversion
- Dividend payable in AUD at 0.0919 per CDI
- Record date set for 13 November 2025
- US withholding tax reduced from 30% to 15% with proper documentation
Dividend Update and Currency Impact
ResMed Inc, a leading player in the healthcare medical devices sector, has issued an update to the foreign exchange rate applicable to its forthcoming ordinary dividend. The dividend, declared at USD 0.06 per share, will be paid to holders of Chess Depositary Instruments (CDIs) trading on the Australian Securities Exchange (ASX). The revised exchange rate stands at 0.6529 US dollars for every Australian dollar, translating to an Australian dollar dividend of 0.0919 per CDI.
Key Dates and Payment Details
The dividend relates to the quarter ending 30 September 2025, with the record date fixed on 13 November 2025 and payment scheduled for 18 December 2025. This timeline provides investors with clarity on when they must hold the CDIs to qualify for the dividend and when the payment will be credited.
Tax Considerations for Australian Investors
Australian residents receiving the dividend face a default US withholding tax rate of 30%. However, thanks to the existing US-Australia tax treaty, this rate can be halved to 15% if investors submit the appropriate forms, such as Form W-8BEN or W-8BEN-E, to ResMed’s Australian share registry, Computershare Investor Services Pty Limited. This provision offers a meaningful tax relief opportunity for Australian investors, potentially enhancing their net dividend returns.
Implications for Investors
The update to the foreign exchange rate is a critical factor for Australian investors, as currency fluctuations can materially affect the AUD value of dividends paid on US-denominated shares. The 10, 1 ratio of CDIs to NYSE shares means that the dividend per CDI is a tenth of the USD share dividend, making the FX rate a key determinant of income. Investors should also be mindful of the withholding tax implications and ensure they submit the necessary documentation to optimise their after-tax returns.
Looking Ahead
While the dividend update does not alter the USD amount declared, the FX adjustment reflects current market conditions and will influence the AUD income stream for ASX investors. As ResMed continues to navigate global markets, currency and tax considerations will remain pivotal for shareholders holding CDIs.
Bottom Line?
Currency shifts and tax treaty benefits will shape the real dividend yield for Australian investors this December.
Questions in the middle?
- Will ResMed maintain or increase dividend payouts amid currency volatility?
- How might future FX fluctuations impact the attractiveness of CDIs for Australian investors?
- What proportion of Australian investors will submit tax forms to reduce withholding tax?
