February 22, 2026 a 02:46 am
MCO: Dividend Analysis - Moody's Corporation
Moody’s Corporation demonstrates a robust dividend history with a constant upward trajectory. The stability and growth of its dividends over the past decades underscore the company's financial health. Despite a modest dividend yield, it remains a reliable choice for income investors seeking long-term returns through increasing payouts.
📊 Overview
The current dividend yield, a modest figure, suggests a focus on reinvestment and growth over immediate income. Moody's is part of a stable sector, indicating reliable and consistent dividend distributions.
| Metric | Value |
|---|---|
| Sector | Financial Services |
| Dividend yield | 0.86 % |
| Current dividend per share | 3.91 USD |
| Dividend history | 33 years |
| Last cut or suspension | None |
🗣️ Dividend History
Moody’s boasts a commendable dividend history over 33 years, reflecting its stability and reliability. This historical perspective is crucial for evaluating consistent growth and shareholder value.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 1.03 |
| 2025 | 3.76 |
| 2024 | 3.40 |
| 2023 | 3.08 |
| 2022 | 2.8 |
📈 Dividend Growth
Dividend growth is a testament to a company’s commitment to enhancing shareholder value. Moody's demonstrates moderate yet steady growth, aligning with its financial strategies.
| 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
The payout ratios provide insight into how much profit is returned to shareholders versus reinvested into the company. It's a crucial metric to ensure the sustainability of dividends.
| Key figure | Ratio |
|---|---|
| EPS-based | 28.32 % |
| Free cash flow-based | 24.89 % |
With EPS and FCF payout ratios at 28.32% and 24.89%, respectively, the dividends appear sustainable, providing room for future growth without over-leveraging the company's financials.
💰 Cashflow & Capital Efficiency
Cash flow is fundamental for maintaining operations and satisfying shareholders through dividends. Moody’s manages an efficient allocation of its capital, ensuring strong cash flow stability.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 3.17 % | 2.93 % | 2.63 % |
| Earnings Yield | 2.69 % | 2.39 % | 2.24 % |
| CAPEX to Operating Cash Flow | 0% | 11.17 % | 12.60 % |
| Stock-based Compensation to Revenue | 3.01 % | - | - |
| Free Cash Flow / Operating Cash Flow Ratio | 1 | 0.888 | 0.874 |
Moody's efficient capital management is evident with strong cash flow yields and minimal CAPEX requirements, enhancing both liquidity and potential growth investments.
📉 Balance Sheet & Leverage Analysis
A solid balance sheet is pivotal for a company’s financial health and its ability to cover liabilities. Moody's demonstrates a stable financial position with careful leverage management.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 1.81 | 2.17 | 2.23 |
| Debt-to-Assets | 46.44 % | 49.96 % | 50.71 % |
| Debt-to-Capital | 64.45 % | 68.48 % | 69.09 % |
| Net Debt to EBITDA | 1.26 | 1.60 | 2.10 |
| Current Ratio | 1.73 | 1.43 | 1.69 |
| Quick Ratio | 1.73 | 1.43 | 1.69 |
| Financial Leverage | 3.90 | 4.35 | 4.41 |
Moody's strategic use of leverage indicates strong financial control, enabling further investment in growth while maintaining healthy liquidity ratios.
⚠️ Fundamental Strength & Profitability
Profitability ratios are critical in assessing a company's ability to generate earnings relative to its expenses and other costs. Moody's shows solid profitability and efficiency.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 60.66 % | 57.73 % | 48.43 % |
| Return on Assets | 15.53 % | 13.27 % | 10.99 % |
| Margins: Net | 31.86 % | 29.03 % | 27.16 % |
| Margins: EBIT | 44.77 % | 40.96 % | 36.21 % |
| Margins: EBITDA | 50.98 % | 47.04 % | 42.51 % |
| Margins: Gross | 68.15 % | 66.40 % | 65.15 % |
| Research & Development to Revenue | 0.00 % | 0.00 % | 0.00 % |
The high returns on equity and consistent profit margins highlight Moody's strong operational performance and efficient resource utilization.
🏷️ Price Development
🛠️ Dividend Scoring System
| Metric | Score (1-5) | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 33/40 points
🔍 Rating
Overall, Moody's Corporation stands out with its strong dividend history and solid financial fundamentals. Its moderate dividend yield is complemented by a robust growth trajectory and excellent payout ratios. This makes Moody’s an attractive option for investors seeking sustainable income and potential capital appreciation. Recommended as a “Hold or Buy” for those focusing on income growth and financial strength.
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