ASX earnings season continues this Friday, with the latest numbers coming in from a few ASX 200 shares today. One of the ASX 200 shares reporting today is healthcare stock Cochlear Ltd (ASX: COH). And boy, are Cochlear's latest numbers and new dividend, prompting a dramatic reaction from the markets.
The company, best known for its hearing implants, revealed its financial results for the six months to 31 December 2025 this morning. And they caused quite the stir.
As we covered earlier this session, Cochlear reported half-year sales revenue of $1.18 billion, up just 1% on the prior corresponding period.
It didn't get any better from there. Cochlear also revealed a statutory net profit of $161.5 million, down a nasty 21%. Underlying profits were a little better, but still came in at $195 million, a drop of 9% from the same period in 2024.
Investors are reacting savagely to what Cochlear had to say today. The healthcare stock closed at $245.64 a share yesterday afternoon. However, investors have sent those shares down a horrid 17.7% at the time of writing to just $202.24.
But let's discuss Cochlear's latest dividend.
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Cochlear shares crash 17% on lower profits, but dividend steady
Over the past few years, Cochlear has built up a reputation as a decent ASX dividend growth stock. The company paid out $2.55 per share in annual dividends back in 2021, and has been increasing them ever since. Shareholders enjoyed a total payout of $3 per share in 2022, $3.30 in 2023, $4.10 in 2024 and $4.30 in 2025. That's a compounded annual growth rate of 13.95% per annum.
Unfortunately, that dividend growth reputation is now at risk. Today, Cochlear unveiled a 2026 interim dividend of $2.15 per share. That's flat on both last year's interim payment and last year's final dividend, both also worth $2.15 a share. This latest dividend represents a payout ratio of 72% of Cochlear's underlying earnings, slightly above the company's 70% payout ratio policy.
This dividend will come partially franked at 85%.
Cochlear shares will trade ex-dividend for this payment on 19 March next month. Payment day will then roll around on 13 April. The company does not have a dividend reinvestment plan (DRP) in operation, so shareholders will have no option but to receive this payment in cash.
As Cochlear's interim dividend is steady, the company now trades on both a trailing and forward dividend yield of 2.13% at current pricing.
