Moody's (MCO) DIvidends Date & History

Key Takeaways

• Moody's Corporation offers a modest dividend yield of 0.90%, with an annual payout of $4.12 per share.
• The company pays quarterly dividends, with the most recent ex-dividend date of March 2, 2026, and payment on March 13, 2026, at $1.03 per share.
• Moody's boasts a 17-year consecutive dividend increase streak, with a 5-year growth rate of approximately 10.91%.
• Payout ratio of around 28-30% indicates strong sustainability, well-covered by earnings and free cash flow (FCF).
• 2025 FCF reached $2.575 billion, with 2026 guidance of $2.8-3.0 billion, supporting ongoing dividend growth.
• Appeals to dividend growth investors seeking reliable increases over high yields.

Dividend Overview

Moody's Corporation (MCO), a leading provider of credit ratings, research, and risk analysis, maintains a conservative dividend policy focused on steady growth rather than high yields. The current annual dividend stands at $4.12 per share, delivering a yield of 0.90%. Dividends are paid quarterly, with the latest payment of $1.03 per share following the ex-dividend date of March 2, 2026. This profile positions MCO as a dividend growth stock, prioritizing reinvestment in its analytics and ratings businesses while rewarding shareholders with consistent raises. The modest yield reflects the company's emphasis on capital appreciation and long-term value creation in the financial data services sector.

Dividend History and Growth

Moody's has demonstrated remarkable dividend discipline, achieving 17 consecutive years of increases as of 2026. Over the past five years, the dividend has grown at a compound annual growth rate (CAGR) of 10.91%, outpacing many peers. Historical data shows steady progression: from $3.08 in 2023 to $3.40 in 2024, $3.76 in 2025, and now $4.12 annualized in 2026. No cuts have occurred in decades, underscoring a long-term strategy tied to recurring revenue from ratings and analytics. This consistency makes MCO a staple for income-focused portfolios seeking reliability.

Dividend Sustainability and Payout Ratio

The dividend's sustainability is robust, supported by a low payout ratio of 28-30% of earnings, leaving ample room for growth and reinvestment. Earnings per share (EPS) of $13.66 comfortably cover the $4.12 dividend, with a coverage ratio exceeding 3x. Free cash flow (FCF) further bolsters this: 2025 FCF hit $2.575 billion, with 2026 guidance at $2.8-3.0 billion, easily funding dividends and share repurchases. Moderate debt levels and strong operating margins (around 52-53%) enhance financial stability, positioning the payout for continued growth without strain.

Dividend Compared to Industry Peers

In the financial data and services industry, MCO's 0.90% yield is modest but aligned with growth-oriented peers. SPGI (S&P Global) offers a similar 0.88-0.93% yield, while MSCI provides 1.44% and FDS (FactSet) around 1.9%. These low yields are typical for the sector, where companies prioritize R&D and acquisitions over high payouts. MCO's superior growth streak gives it an edge for long-term income investors versus higher-yielding but slower-growing rivals.

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Is This Stock Attractive for Dividend Investors?

Moody's Corporation appeals primarily to dividend growth investors who prioritize consistent raises and total return over immediate high income. Its 17-year streak and 10%+ CAGR suit those building compounding portfolios, especially given the low payout ratio ensuring future hikes. Long-term holders in the financial services space may value the stability from Moody's dominant ratings franchise and recurring revenues. Conservative investors could appreciate the earnings and FCF coverage amid economic cycles. However, yield seekers might look elsewhere, as the 0.90% lags high-yield alternatives. Overall, MCO fits growth-oriented dividend strategies, balancing modest income with capital appreciation potential in a low-yield sector.

Disclaimer

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