The ResMed Inc (ASX: RMD) share price is slipping on Wednesday.
Shares in the S&P/ASX 200 Index (ASX: XJO) healthcare stock closed yesterday trading for $23.76. In morning trade today, shares are swapping hands for $23.46 apiece, down 1.3%.
For some context, the ASX 200 is up 0.1% at this same time.
Here's what's happening.
Why is the ResMed share price slipping?
Much of this morning's sell-off in the ResMed share price has nothing to do with the company itself. Or with any fresh news relating to potentially competing global health advancements in sleep technology, for that matter.
Instead, investors are hitting the sell button because the ASX 200 healthcare stock is trading ex-dividend today.
That means investors buying shares today will no longer be eligible for ResMed's 4.8 US cents per share interim dividend. That income payout will instead go to shareholders who owned the stock at market close yesterday.
It's common for a company's shares to fall on the day they trade ex-dividend, as we see with the ResMed share price today. Similarly, you'll often see shares climb in the lead-up to their ex-dividend date, as income investors snap up shares to secure that payout.
Unlike most ASX 200 dividend shares, ResMed pays out quarterly dividends, generally unfranked.
At the current share price, ResMed trades on a trailing yield of 1.3%.
What's been happening with the ASX 200 healthcare stock?
Management declared the 4.8 US cent per share dividend when ResMed reported its quarterly results on 27 October.
Highlights included a 16% increase in revenue to US$1.1 billion and a 5% boost in income from operations.
Despite some strong metrics, the ResMed share price closed down 4% on the day the company reported.
Looking ahead, ResMed CEO Mick Farrell was optimistic about the company's growth prospects.
"Our ability to meet global demand with technologies … has positioned us well to continue growing across global markets, with particularly strong growth this quarter in Europe, Asia, and beyond," he said.