Here’s everything you need to know about Ramsay’s latest dividend

The Ramsay Health Care Ltd (ASX: RHC) share price is continuing to push higher in mid-afternoon trade on Friday.

At the time of writing, the hospital operator’s shares are up 2.09% to $43. This follows Thursday’s huge 10.35% surge after the company released its half-year results.

While the broader result centred on steady earnings growth, income investors are paying closest attention to Ramsay’s latest dividend announcement.

Here’s what you need to know.

Ramsay lifts interim dividend by 6.3%

Ramsay declared a fully franked interim dividend of 42.5 cents per share.

That represents a 6.3% increase on the prior corresponding period.

The dividend reflects a 60% payout ratio on underlying net profit after tax (NPAT) and non-controlling interests, in line with the company’s stated dividend policy.

Ramsay has consistently targeted a payout ratio of between 60% and 70% of underlying earnings. This approach has helped position the stock as a relatively reliable income option within the ASX healthcare sector.

Because the dividend is fully franked, it provides additional after-tax value for eligible income investors.

Key dividend dates to note

Investors considering buying shares for the payout should take note of the following dates:

• Ex-dividend date: 6 March 2026

• Record date: 7 March 2026

• Payment date: 3 April 2026

To be eligible for the dividend, shares must be purchased before the ex-dividend date.

Ramsay confirmed that its dividend reinvestment plan (DRP) is suspended and will not operate for this interim dividend.

What does this mean for investors?

At the current share price of $43, the 42.5-cent interim dividend represents a yield of roughly 1% before franking credits.

On an annualised basis, if the final dividend is similar, this implies a forward yield of approximately 2% before franking.

While Ramsay is not typically viewed as a high-yield stock, it has built a track record of maintaining and gradually increasing its dividend.

Management reaffirmed its intention to keep the full-year payout ratio within its 60% to 70% target range, suggesting no material change in capital return strategy.

Foolish takeaway

Ramsay’s interim dividend increase may not transform it into a high-yield stock overnight, but it does reinforce the company’s commitment to steady capital returns.

The 6.3% lift, fully franked status, and adherence to its payout policy suggest management remains confident in the group’s cash generation and balance sheet position.

Importantly, Ramsay continues to offer a defensive healthcare exposure with a growing dividend profile.

With management reaffirming its payout policy and maintaining balance sheet discipline, the dividend outlook appears stable under current economic conditions.

The post Here’s everything you need to know about Ramsay’s latest dividend appeared first on The Motley Fool Australia.

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