What’s happening with the ResMed share price on Wednesday?

The ResMed Inc (ASX: RMD) share price is edging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) healthcare stock closed yesterday trading for $29.30. In morning trade on Wednesday, shares are swapping hands for $29.34, up 0.1%.

For some context, the ASX 200 is up 0.6% at this same time.

Here’s what’s happening.

What’s going on with the ASX 200 healthcare company?

The ResMed share price may be trailing the ASX 200 because the sleep treatment company’s stock is trading ex-dividend today.

That means investors who buy the stock today will no longer be eligible for the 4.8 US cents per share unfranked dividend.

That passive income payout will go to investors who held ResMed shares at market close yesterday. Eligible investors can expect to see this hit their bank accounts on 14 March.

The company will report on the Aussie dollar equivalent for ASX investors on Friday, 9 February. (At time of writing AU$1 is worth 65.3 US cents.)

It’s common for stocks to face some headwinds on the day they trade ex-dividend. All else being equal, the ResMed share price is now factored in at 4.8 US cents less than it would have been yesterday.

Unlike most ASX 200 stocks, ResMed pays dividends on a quarterly basis.

In the quarter just past, the company paid US$70.7 million in dividends. It also repurchased 335,000 shares for US$50 million as part of ResMed’s ongoing capital management.

Overall, it was a strong quarter for the company, with revenue up 12% year on year (11% on a constant currency basis) to US$1.2 billion. And profits were well up, with non-GAAP operating profit leaping 20%.

Commenting on the outlook for the sleep treatment company on the day it reported, CEO Mick Farrell said, “ResMed is well-positioned to lean into leading the expansion and growth of sleep health and breathing health. We are the clear leader in a very large and growing market.”

ResMed share price snapshot

The steep falls in August and September see the ResMed share price down 7% over 12 months.

Shares have soared 37% since the lows on 25 September.

The post What’s happening with the ResMed share price on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Own Resmed shares? Here are 3 impactful points from the results of its feared disruptor
• ‘Long and bullish’: 2 classic ASX 200 shares to buy while they’re still cheap
• Don’t look now, but these 3 ASX shares look poised for a nice rally
• ‘Appealing outlook’: 2 ASX 200 shares that just started their latest rally
• Hoping to bag the ResMed dividend? You better be quick!

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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