The ResMed Inc (ASX: RMD) share price is marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) sleep disorder treatment company closed yesterday trading for $32.89. In late morning trade on Wednesday, shares are changing hands for $33.22 apiece, up 1.0%.
For some context, the ASX 200 is up 0.5% at this same time.
ResMed share price resilient on ex-dividend day
Investors will be accustomed to the ResMed share price outperforming in 2024. The ASX 200 healthcare stock is up an impressive 31% year to date.
But today's outperformance is noteworthy as ResMed stock is trading ex-dividend.
This means investors buying shares today will no longer be eligible to receive the record-high final dividend of 5.7 cents per share, unfranked.
That passive income will instead go to investors who held the stock at market close yesterday. Eligible investors can expect that payout to hit their bank account on 19 September.
As you may be aware, ResMed pays dividends every quarter, rather than twice a year like most ASX dividend stocks.
At the current ResMed share price, the stock trades on a modest 0.64% trailing dividend yield. But those dividends have been steadily increasing over the past decade.
The company's FY 2024 results highlight why its share price has been flying higher and why management was able to boost the dividend to new highs.
Among the core financial metrics in Q4 FY 2024, ResMed reported revenue of US$1.2 billion, up 9% from Q4 FY 2023. During the quarter, the company paid $71 million in dividends.
For the full 2024 financial year, ResMed posted an 11% increase in revenue to US$4.7 billion.
Is the ASX 200 healthcare share a good investment?
With the ResMed share price already up 31% in 2024, is the ASX 200 healthcare stock still a good investment?
Yes, according to Morgans.
Following the release of ResMed's quarterly results on 2 August, the broker retained its 'add' rating on the stock and upped its price target to $35.93 a share. That represents a potential upside of 8.2% from current levels.
Morgans cited good cost control and gross margin improvement as factors helping boost its outlook for the company.
Motley Fool analyst Mitchell Lawler was also impressed by the latest performance results.
Lawler upped his own shareholdings in the company last week despite noting that the ResMed share price had not sold off as heavily as many quality ASX 200 stocks during the recent market pullback.
"I want to see signs of pricing power from the companies I'm invested in. ResMed's fourth-quarter and full-year FY2024 results delivered," he said.
According to Lawler:
These numbers tell me ResMed continues to wield its brand and unique value proposition to its competitive advantage. That is to say, I believe this company is poised to keep earning an abnormally high return compared to the market average.
