Moody's (MCO) DIvidends Date & History

Key Takeaways

• Modest yield: MCO offers a dividend yield of roughly 0.8% to 0.9%, well below the broader market and its industry median.
• Consistent payer: Moody's has paid dividends since 1984 and raised its payout for 16 consecutive years.
• Strong growth rate: The dividend has grown at a roughly 10% annualized rate over the past five years.
• Healthy coverage: A payout ratio near 27% to 30% of earnings leaves ample room for future increases.
• Investor fit: Best suited to dividend growth investors rather than income-focused investors seeking high current yield.

Dividend Overview

Moody's Corporation pays a quarterly dividend, currently $1.03 per share, for an annualized payout of about $4.12 per share. Based on recent trading levels, this translates to a dividend yield of approximately 0.8% to 0.9%. The most recent distribution of $1.03 per share was paid on June 5, 2026, to shareholders of record as of the May 15, 2026 ex-dividend date, with the next quarterly payment following an August 14, 2026 ex-dividend date.

Moody's is best characterized as a dividend growth stock with a modest starting yield. Because the company reinvests heavily in its credit ratings and analytics businesses, it returns a relatively small share of earnings through dividends and emphasizes steady, above-average annual increases over maximizing current income. This profile contrasts with traditional high-yield equities, where a larger portion of earnings is distributed to shareholders each quarter.

Dividend History and Growth

Moody's has a long record as a dividend payer, having distributed cash to shareholders since 1984 and increased its dividend for 16 consecutive years. The payout has climbed steadily from $0.62 per share quarterly in 2021, to $0.77 in 2023, $0.85 in 2024, $0.94 in 2025, and $1.03 in 2026. Over the past five years, the dividend has compounded at roughly 10% annually, and over the trailing twelve months the per-share payout has risen about 9% to 10% year over year.

This track record reflects a deliberate, predictable strategy of modest but reliable annual increases rather than dramatic swings. The company's growth streak of 16 years places it in a select group of dividend growers, though it has not yet reached the multi-decade "Dividend Aristocrat" threshold. Importantly, the dividend has not been cut during its recent history, underscoring management's commitment to consistency.

Dividend Sustainability and Payout Ratio

Moody's dividend appears well covered. The company's payout ratio — the share of earnings distributed as dividends — sits between roughly 27% and 30% on a trailing twelve-month basis, and is even lower (around 23% to 25%) when measured against operating cash flow. This means Moody's retains the large majority of its earnings and free cash flow to fund growth, buy back shares, and manage its balance sheet.

Moody's runs a highly profitable, asset-light business with strong margins and recurring revenue, which supports dependable cash generation through economic cycles. The low payout ratio provides a wide cushion, giving management flexibility to sustain and grow the dividend even during periods of softer earnings. Combined with the company's disciplined capital allocation, these factors indicate the current dividend is sustainable and leaves meaningful headroom for continued increases.

Dividend Compared to Industry Peers

Within its sector, Moody's dividend yield is on the lower end. The median yield for comparable companies sits around 1.3% to 1.5%, roughly double Moody's roughly 0.9% yield. Peers such as SPGI (S&P Global) and MSCI similarly carry sub-1% yields, reflecting the broader financial data and analytics industry's preference for reinvestment and share repurchases over large cash distributions.

In contrast, data and business-services peers such as EFX (Equifax) and FDS (FactSet) offer slightly higher yields. Moody's differentiates itself through its dividend growth rate: a roughly 10% annualized five-year increase exceeds the industry median, meaning shareholders receive a rapidly growing, if initially small, income stream. For investors, Moody's represents a lower-yield, higher-growth profile rather than a high-income alternative.

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Is This Stock Attractive for Dividend Investors?

Moody's is best suited to dividend growth investors and long-term investors who prioritize compounding income over high current yield. Its sub-1% yield means it is unlikely to satisfy income-focused investors seeking substantial cash flow today, and it is not a natural fit for conservative, yield-dependent portfolios. However, for investors with a long horizon, the combination of a 16-year growth streak, a roughly 10% five-year growth rate, and a low payout ratio offers an attractive trajectory of rising income.

The company's durable, high-margin business model and strong cash generation support the view that the dividend can continue growing through economic fluctuations. Growth-oriented dividend investors willing to accept a modest starting yield may find the compounding potential compelling. As always, dividend sustainability depends on future earnings, and investors should evaluate their own objectives and risk tolerance before acting.

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