ResMed Inc (ASX: RMD) shareholders are mostly likely feeling frustrated after the share price has seesawed in 2022.
The sleep treatment focused medical device company released its third quarter results late last month.
After falling short of the market’s estimates for revenue and earnings, ResMed shares sank 4.08% on the day.
Nonetheless, the board opted to ramp up its upcoming quarterly dividend to eligible investors.
Let’s take a look below at what you need to know in regards to the latest dividend.
What’s the deal with the ResMed dividend?
The ResMed share price backtracked as investors vented their disappointment following the company’s financial scorecard for the March quarter.
The company is set to pay out US 4.2 cents per share for the 3 months ending 31 March 2022. That’s 7.69% higher than the prior corresponding period dividend of US 3.9 cents per share.
Management, however, noted there may still be uncertainty associated with COVID-19 over the next year. Nonetheless, its long-term strategy is focused on supporting 250 million people in 2025.
The higher dividend came on the back of the company recording a 12% increase in revenue to $864.5 million.
When can shareholders expect to be paid?
ResMed will pay the latest dividend to eligible shareholders on 16 June 2022.
However, to be eligible you’ll need to own ResMed shares before the ex-dividend date which falls on Wednesday 11 May. This means if you want to secure the dividend, you will need to purchase the company’s shares by tomorrow at the latest.
It is worth noting that on the ex-dividend day, the share price traditionally falls in proportion to the dividend amount.
In addition, the dividend is not franked which means that investors will miss out on the tax credits.
Currently, ResMed has a dividend trailing yield of 0.56% and a market capitalisation of roughly $11.44 billion.