MSCI (MSCI) DIvidends Date & History

Key Takeaways

• MSCI pays a quarterly dividend of $2.05 per share, for an annualized payout of $8.20 and a dividend yield of roughly 1.4%.
• The company has raised its dividend for more than a decade, with a five-year compound annual growth rate (CAGR, the average yearly growth rate over a period) near 20%.
• A payout ratio of roughly 42% to 45% of earnings, and about 38% of free cash flow, leaves ample room for future increases.
• MSCI is best classified as a dividend growth stock rather than a high-yield income stock.
• The modest yield sits roughly in line with financial-data and index peers and is supported by consistent, above-average payout growth.

Dividend Overview

MSCI Inc., a leading provider of indexes, portfolio analytics, and environmental, social, and governance (ESG) data and ratings, maintains a disciplined but modest dividend policy. The company pays a quarterly dividend, most recently $2.05 per share, which translates to an annualized dividend of $8.20 and a current dividend yield of approximately 1.4%. This is a low yield by broad market standards, but it reflects a business model that prioritizes reinvestment and share buybacks alongside cash dividends. MSCI is best described as a dividend growth stock: its payout has climbed rapidly from a modest base rather than offering an outsized starting yield. For dividend investors, the appeal lies less in current income and more in the pace and consistency of annual increases, which have been among the strongest in the financial-data sector.

Dividend History and Growth

MSCI initiated a regular dividend in 2014 and has increased it every year since, marking more than a decade of consecutive annual raises. The growth has been steep. The quarterly dividend rose from $1.04 per share in 2021 to $1.25 in 2022, $1.38 in 2023, $1.60 in 2024, $1.80 in 2025, and $2.05 in 2026. On an annualized basis, that equates to dividends per share climbing from roughly $3.64 in 2021 to $8.20 in 2026. The five-year dividend growth rate averages roughly 19% to 20% annually, placing MSCI among the faster-growing dividend payers in its industry. The company has not cut its dividend during this period, and its increases have been steady rather than sporadic, reflecting a clear long-term commitment to returning capital to shareholders.

Dividend Sustainability and Payout Ratio

MSCI's dividend appears well covered and sustainable. Its payout ratio, measured as dividends divided by earnings, typically ranges from roughly 42% to 45%, while the payout relative to free cash flow (FCF, the cash a company generates after funding operations and capital spending) sits near 38% to 39%. Both figures are comfortably below levels that would signal strain. The business is underpinned by highly recurring, subscription-style revenue from index licensing, analytics subscriptions, and asset-based fees, which supports predictable cash generation even during market downturns. Management balances the dividend with significant share repurchases, indicating financial flexibility. With a conservative payout ratio, strong free cash flow, and a track record of consistent increases, the dividend is supported by solid fundamentals and leaves capacity for continued growth.

Dividend Compared to Industry Peers

Within the financial-data, index, and analytics segment, MSCI's yield is moderate and broadly comparable to its peers. Companies such as SPGI (S&P Global), MCO (Moody's), NDAQ (Nasdaq), FactSet, and Intercontinental Exchange generally offer yields of roughly 0.7% to 1.5%, all of which are low relative to the broader market. In this context, MSCI's yield of about 1.4% sits at the higher end of its peer group, even though it remains modest in absolute terms. What differentiates MSCI is its dividend growth rate, which is among the fastest in the sector. Investors seeking immediate income will find little advantage here versus peers, but those focused on growing payouts over time may find MSCI's profile relatively attractive within its industry.

AI Screener

Tickeron's AI Screener is an AI-powered stock and exchange-traded fund (ETF) discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener can also help identify dividend stocks, income-focused investments, trending names, breakout candidates, and emerging market opportunities far more efficiently than manual screening. For dividend investors researching companies like MSCI, the AI Screener offers a practical way to compare yields, growth rates, and fundamentals across the market.

Is This Stock Attractive for Dividend Investors?

MSCI is most suitable for dividend growth investors and long-term investors who prioritize a rising payout over current income. Because the starting yield is low at roughly 1.4%, the stock is generally not a fit for income-focused or conservative investors who rely on dividends for near-term cash flow. Instead, its appeal lies in a decade-plus streak of annual increases and a five-year dividend growth rate near 20%, which has the potential to meaningfully raise income on cost over time for patient holders. The combination of a modest payout ratio, strong free cash flow, and recurring revenue also suggests the dividend is well protected. However, the stock's growth profile carries valuation and market sensitivity, and the modest yield means total-return-oriented investors may view the dividend as a secondary feature. Overall, MSCI is best viewed as a quality dividend-growth holding for investors with a longer time horizon rather than a source of immediate yield.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations