Moody's (MCO) DIvidends Date & History

Key Takeaways

• Moody's pays a quarterly dividend of $1.03 per share, or roughly $4.12 per share annually.
• The stock offers a modest dividend yield of approximately 0.8%, well below many income-focused names.
• Moody's has raised its dividend for 16 consecutive years, with a five-year annualized growth rate near 11%.
• The payout ratio sits around 27–30% of earnings, leaving substantial room for future increases.
• The dividend is best suited to long-term dividend growth investors rather than high-yield income seekers.

Dividend Overview

Moody's Corporation (MCO) is a global credit ratings, research, and risk analytics firm that also maintains a consistent shareholder dividend. The company pays its dividend quarterly, and its most recent distribution was raised to $1.03 per share, paid on September 4, 2026, to shareholders of record as of August 14, 2026. On an annualized basis, the dividend totals approximately $4.12 per share, translating to a dividend yield of roughly 0.8%.

Moody's is best described as a dividend growth stock rather than a high-yield stock. The company prioritizes steady, above-average dividend increases over maximizing its current yield, reflecting its emphasis on reinvesting capital back into the business while still rewarding long-term shareholders.

Dividend History and Growth

Moody's has a lengthy dividend track record, with uninterrupted payments stretching back to 1984. More notably for dividend investors, the company has increased its payout every year for 16 consecutive years, a streak that places it among the more dependable dividend growers in the financial information sector.

The pace of those increases has been impressive. Over the past five years, Moody's dividend has grown at an annualized rate of approximately 10.9%, well above the rate of inflation and faster than many of its peers. Recent quarterly increases moved the payment from $0.77 in 2023 to $0.85 in 2024, then to $0.94 in 2025, and finally to $1.03 in 2026. This consistent double-digit trajectory reflects management's confidence in the company's durable, subscription-driven revenue base and strong cash generation.

Dividend Sustainability and Payout Ratio

Moody's dividend appears highly sustainable by conventional measures. The company's payout ratio, which measures dividends as a percentage of earnings, is roughly 27–30%, and its cash-flow-based payout ratio is even lower, near 23–25%. These levels are comfortably below the thresholds that typically raise concerns about dividend safety, giving management significant flexibility to continue raising the payout even if earnings growth moderates.

The underlying business reinforces this stability. Moody's generates substantial free cash flow from its credit ratings and analytics segments, and its ratings business holds a leading position in a market it shares primarily with S&P Global. While the company does carry debt, its predictable revenue and strong cash conversion provide ample coverage for both its dividend and its share repurchase program. The modest yield also means the dividend represents a small claim on earnings, reducing the risk of a future cut.

Dividend Compared to Industry Peers

Within the financial data and analytics sector, Moody's dividend yield of roughly 0.8% is on the lower end of the range. Comparable companies such as SPGI (S&P Global) and MSCI also offer relatively modest yields in the 0.8% to 1.1% range, while the broader financial sector median sits closer to 1.3%. Moody's yield is therefore below the sector average, a reflection of the stock's higher valuation and the company's preference for dividend growth over current income.

Where Moody's stands out is in the pace of its increases. Its five-year dividend growth rate near 11% and 16-year growth streak compare favorably with many peers, positioning the company as a growth-oriented dividend payer rather than an income vehicle.

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Is This Stock Attractive for Dividend Investors?

Moody's is most appropriate for dividend growth investors and long-term investors who prioritize rising income over a high starting yield. The roughly 0.8% yield will not satisfy investors seeking immediate cash flow, but the company's 16-year streak of increases and near-11% five-year growth rate mean that a patient holder's yield on original cost can compound meaningfully over time.

The stock may also appeal to investors who value capital appreciation alongside income. Because the payout is conservative relative to earnings and cash flow, Moody's retains substantial capital to fund growth, buybacks, and future dividend hikes. Conservative investors who emphasize dividend safety over yield may likewise find the low payout ratio and stable, subscription-driven cash flows reassuring. However, investors who require a high current yield from their portfolio would likely find more suitable alternatives elsewhere in the market. As with any equity, dividend performance ultimately depends on continued earnings growth and the company's financial health.

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