January 23, 2026 a 03:31 pm
MCO: Dividend Analysis - Moody's Corporation
Moody's Corporation exhibits a robust dividend profile, characterized by its sustained growth and strong historical performance. Although the current yield stands relatively low at 0.78%, the company's dividend history of 26 uninterrupted years underscores its commitment to shareholders. The moderate dividend growth rate over recent years further suggests stability and potential for future returns.
📊 Overview
Detailed assessment of Moody's dividend history reveals consistent growth, marked by 26 years without a cut or suspension. The current dividend yield is modest, yet the per-share payout displays a commendable trajectory.
| Metric | Value |
|---|---|
| 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
Moody's dividend history demonstrates resilience in its payouts, even during challenging economic periods, offering shareholders consistent returns. This reliability is pivotal for income-focused investors.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 3.76 |
| 2024 | 3.40 |
| 2023 | 3.08 |
| 2022 | 2.80 |
| 2021 | 2.48 |
📈 Dividend Growth
The growth in dividends illustrates Moody's capacity to increase shareholder value steadily. It reflects the company's financial health and management's confidence in future earnings performance.
| Time | Growth |
|---|---|
| 3 years | 10.33% |
| 5 years | 10.91% |
The average dividend growth is 10.91% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios are crucial indicators of dividend sustainability. Moody's payout ratios suggest a balanced approach between rewarding shareholders and retaining earnings for growth.
| Key Figure | Ratio |
|---|---|
| EPS-based | 27.28% |
| Free cash flow-based | 23.14% |
With an EPS-based payout ratio of 27.28% and a free cash flow-based ratio of 23.14%, Moody's dividend policy appears conservative, allowing room for reinvestment while maintaining shareholder returns.
📊 Cashflow & Capital Efficiency
Cash flow metrics and capital efficiency ratios are vital to understanding a company's operational health and its ability to maintain or increase dividend payments.
| Metric | 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 | 3.79% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 88.83% | 87.40% | 80.80% |
Moody's demonstrates strong cash flow stability, enhanced capital efficiency, and sound capital return figures, indicating a stable base for ongoing dividend commitments.
📉 Balance Sheet & Leverage Analysis
Balance sheet analysis is crucial for determining financial stability and the company's ability to service its obligations while rewarding shareholders.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 2.17 | 2.23 | 3.12 |
| Debt-to-Assets | 49.96% | 50.71% | 54.80% |
| Debt-to-Capital | 68.48% | 69.09% | 75.74% |
| Net Debt to EBITDA | 1.50 | 2.10 | 2.64 |
| Current Ratio | 1.84 | 1.69 | 1.72 |
| Quick Ratio | 1.43 | 1.69 | 1.72 |
| Financial Leverage | 4.35 | 4.41 | 5.70 |
Moody's balance sheet reflects a prudent leverage strategy, with decreasing debt metrics year-over-year, contributing positively to its financial standing and creditworthiness.
🏦 Fundamental Strength & Profitability
Fundamentals and profitability are primary indicators of managerial efficiency and the company's competitive advantage in its industry.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 57.73% | 48.43% | 54.55% |
| Return on Assets | 13.27% | 10.99% | 9.58% |
| Net Profit Margin | 29.03% | 27.16% | 25.13% |
| EBIT Margin | 40.96% | 36.21% | 36.13% |
| EBITDA Margin | 47.03% | 42.51% | 42.19% |
| Gross Margin | 66.41% | 65.15% | 64.45% |
| Research & Development to Revenue | 0% | 0% | 0% |
Moody's maintains high profitability, with impressive return metrics showcasing effective use of shareholder equity and assets to drive business success.
📈 Price Development
🎯 Dividend Scoring System
| Criteria | Score | Indicator |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 32/40
🏆 Rating
Moody's Corporation is a strong candidate for dividend-focused investors, given its long-standing dividend history, low payout ratios, and robust financials. While the yield is modest, consistent growth and financial stability make it a worthy consideration for a balanced portfolio.