Moelis & Company (MC) DIvidends Date & History

Key Takeaways

• Moelis & Company (MC) offers a forward dividend yield of 3.92%, significantly above the investment banking sector average.
• Quarterly dividend of $0.65 per share, equating to an annual payout of $2.60.
• Payout ratio of approximately 82-88%, covered by earnings but elevated, signaling potential caution for long-term growth.
• Free cash flow (FCF) covers dividends comfortably at around 37-38% of payouts, supporting sustainability.
• Recent ex-dividend date: February 17, 2026; payment date: March 26, 2026.
• Higher yield than peers like Goldman Sachs (GS) at ~2%, appealing for income-focused investors.

Dividend Overview

Moelis & Company (MC), a leading independent investment bank, maintains a consistent quarterly dividend policy, paying $0.65 per share for an annualized dividend of $2.60. This delivers a forward yield of 3.92% based on recent trading levels. The company positions itself as a high-yield payer within the financial services sector rather than a dividend growth stock, prioritizing returns to shareholders amid cyclical advisory revenues. Payments have been reliable since its public listing, with the most recent ex-dividend date on February 17, 2026, and payment on March 26, 2026. This profile suits investors seeking elevated income from boutique investment banking exposure, though variability in deal flow could influence future declarations.

Dividend History and Growth

Moelis & Company has paid quarterly dividends consistently since its 2014 IPO, with 50 total payouts recorded. The current $0.65 quarterly rate reflects stability rather than aggressive growth, as the three-year average dividend growth rate stands at -20.96% due to periodic adjustments tied to earnings performance. No long-term dividend aristocrat streak exists, but the firm has avoided cuts in recent years, maintaining payouts through market cycles. The board's repeated declarations, including the February 2026 announcement, underscore a shareholder-friendly strategy focused on distributing a significant portion of profits from mergers, acquisitions (M&A), and restructuring advisory fees.

Dividend Sustainability and Payout Ratio

Moelis & Company's dividend payout ratio hovers between 81.9% and 88.4% of earnings, above the 75% threshold often viewed as a sustainability red flag for cyclical firms. Earnings adequately cover payments, bolstered by 2025 free cash flow of $540 million, up 30% year-over-year, representing just 37-38% FCF payout. Low debt levels enhance stability, though reliance on volatile M&A activity (mergers and acquisitions) poses risks. Overall, the dividend appears maintainable in the near term, supported by a new $300 million share repurchase authorization alongside payouts.

Dividend Compared to Industry Peers

In the investment banking and brokerage sector, Moelis & Company's 3.92% yield outpaces the average of 2.52-2.94% (weighted by market cap). Peers like Goldman Sachs (GS) yield around 2.2%, while larger banks prioritize reinvestment. Boutique rivals such as Evercore (EVR) and Lazard (LAZ) offer lower yields of 1.5-1.8%. MC's higher payout reflects its leaner structure and focus on advisory fees, making it stand out for yield but with elevated payout risks versus diversified giants.

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Is This Stock Attractive for Dividend Investors?

Moelis & Company (MC) appeals to income-oriented investors comfortable with financial sector cyclicality, drawn by its above-peer 3.92% yield and quarterly payouts. Those prioritizing current income over rapid growth may find the $2.60 annual dividend compelling, especially versus lower-yielding banks. Conservative long-term holders could value FCF coverage and buybacks as buffers, though the high 82-88% payout ratio warrants monitoring amid M&A volatility. It suits yield-focused portfolios seeking boutique banking exposure but less ideal for dividend growth seekers expecting annual hikes. Balanced investors might pair it with diversified financials for stability, weighing advisory revenue trends against payout sustainability.

Disclaimer

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