@Jarrahman in addtion to @Mujo 's comment, paying a low but increasing dividend is also a way of signalling to the market that the companies sees higher return opportunities in investing in growth - whether organically through R&D (although in $RMD's case, there is a fairly mature model of capital allocation here in terms of $ of revenue) or inorganically.

As part of $RMD's strategy, it aims to keep a decent level of liquidity for bolt-on acquisitions, as a declared part of its strategy.

Next, many US companies also return capital to shareholders via share buybacks, which has also been the case with $RMD. They are going to increase this in FY26. In fact many US companies favour buyback over dividends, because it makes the EPS growth look good.

Finally, in growth stocks, it is common for companies to signal the rate at which they believe EPS will grow into the future by the percentage increase of the dividend (more of less). So, it the case of $RMD the 13.3% increase in dividend FY25 over FY24, is a signal of the rate at which they expect EPS to grow. The idea here is that shareholders value dividend stability and predictability, and a company that pays a reliably increasing dividend - whatever is happening elsewhere in the financials - will retain a higher multiple.

On this final point, I don't think $RMD is there yet, and so I kind of agree with your point. DPS growth over the last several years has been all over the place: 13.3%(FY25), 6.7%(FY24), 7.1%(FY23), 7.7%(FY22), 0%(FY21 - COVID & supply chain uncertainties); 4.0% (FY20); and 5.6% (FY19).

That muted DPS growth level indicates to me that they have preferred buybacks and keep cash for acquisitions over DPS growth.

But as they grow with continuing operating leverage, FCF is going to become preogressively stronger, and so perhaps this year's +13.3% DPS is a sign of things to come.

US company so pretty common. Financials quarterly and dividends quarterly.

Dividend cuts have negative signalling connotations to the market and yield is just a function of the current share price.