December 05, 2025 a 03:31 pm
MCO: Dividend Analysis - Moody's Corporation
Moody's Corporation provides a stable dividend with a yield of 0.78%. Its ability to sustain payouts through various cycles is affirmed by its 26-year dividend history. This consistent track record highlights Moody's commitment to returning value to its shareholders, even though its yield might seem modest relative to peers. Its well-maintained financial ratios indicate a robust financial position, supporting long-term dividend reliability.
📊 Overview
| Aspect | Detail |
|---|---|
| Sector | Financial Services |
| Dividend Yield | 0.78% |
| Current Dividend Per Share | 3.41 USD |
| Dividend History | 26 years |
| Last Cut or Suspension | None |
📈 Dividend History
The recorded dividend history demonstrates Moody's commitment to continuous shareholder returns, showcasing a steady escalation from a mere $0.0225 per share in 2000 to $3.76 in 2025.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 3.76 |
| 2024 | 3.40 |
| 2023 | 3.08 |
| 2022 | 2.80 |
| 2021 | 2.48 |
🔍 Dividend Growth
Moody's has maintained a moderate dividend growth of approximately 11% over the last three to five years. This growth trajectory underlines the company's stable financial strategy and its commitment to rewarding shareholders.
| Time | Growth |
|---|---|
| 3 years | 11.09% |
| 5 years | 11.20% |
The average dividend growth is 11.20% over 5 years. This shows moderate but steady dividend growth.
💼 Payout Ratio
With a manageable EPS-based payout ratio of 27% and an FCF-based ratio of 23%, Moody's demonstrates a strong capability to maintain its dividend while still reinvesting in its business. This balance indicates prudent financial management and long-term sustainability.
| Key figure | Ratio |
|---|---|
| EPS-based | 27.28% |
| Free cash flow-based | 23.20% |
🚀 Cashflow & Capital Efficiency
Evaluating Moody's cashflow reveals a consistent capacity to generate liquidity, crucial for funding dividend payouts, operations, and expansion plans. Strong capital efficiency as shown in its CAPEX and Stock-based Compensation metrics underscores optimized resource allocation.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 2.93% | 2.63% | 2.32% |
| Earnings Yield | 2.39% | 2.25% | 2.68% |
| CAPEX to Operating Cash Flow | 11.17% | 12.60% | 19.20% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
📉 Balance Sheet & Leverage Analysis
Moody's leverage ratios, such as Debt-to-Equity and Current Ratios, reflect moderate leverage and enhanced liquidity, which underpin the firm's ability to meet its financial obligations. This portrays a sound financial strategy conducive to sustained dividend distributions.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 2.17 | 2.23 | 3.12 |
| Current Ratio | 1.43 | 1.69 | 1.72 |
| Quick Ratio | 1.43 | 1.69 | 1.72 |
📈 Fundamental Strength & Profitability
The company's fundamentals display impressive profitability metrics, such as ROE and ROA, aligning with robust profit margins. These metrics underscore Moody's effective management and capital allocation strategies, securing its dividend policy's future viability.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 57.73% | 48.43% | 54.55% |
| Return on Assets | 13.27% | 10.99% | 9.58% |
| Net Margin | 29.03% | 27.16% | 25.13% |
🗣️ Price Development
✅ Dividend Scoring System
| Category | Score | |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 34 out of 40
🏁 Rating
Moody's Corporation presents a compelling dividend investment opportunity with its solid payout track record, moderate growth prospects, and robust financial health. While its yield might not be the highest in the sector, the company's long-standing commitment to dividend payments, supported by strong fundamentals, makes it a reliable choice for income-focused investors.