July 13, 2025 a 07:31 am
MSCI: Dividend Analysis - MSCI Inc.
MSCI Inc. presents a compelling case for dividend seekers with a modest dividend yield of 1.47%, underpinned by a steady growth history. Over the past 12 years, the company has demonstrated consistent dividend issuance without any cuts, indicative of its financial resilience. The firm's payout ratios suggest a disciplined approach to capital management, with a balance between rewarding shareholders and reinvesting in growth.
📊 Overview
MSCI Inc. operates within the financial sector, where it holds a competitive position by providing critical indices and portfolio construction and risk management solutions. With a current dividend yield of 1.47%, the organization offers an attractive dividend per share of $6.47, marking a 12-year uninterrupted history of dividend payments.
| Metrics | Details |
|---|---|
| Sector | Financial |
| Dividend Yield | 1.47% |
| Current Dividend Per Share | $6.47 |
| Dividend History | 12 years |
| Last Cut or Suspension | None |
🗓️ Dividend History
The dividend history of MSCI Inc. highlights its commitment to shareholder return, having consistently paid dividends without interruptions. This decisiveness reflects the company's robust financial practices and strategic foresight in maintaining shareholder value through variable market conditions.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | $3.60 |
| 2024 | $6.40 |
| 2023 | $5.52 |
| 2022 | $4.58 |
| 2021 | $3.64 |
📈 Dividend Growth
MSCI's dividend growth trajectory points towards sound financial health, with growth rates of approximately 20.70% over the last 3 years and 20.49% over the last 5 years. This steady increase reflects the company's commitment to enhancing shareholder value while balancing reinvestment opportunities.
| Time | Growth |
|---|---|
| 3 years | 20.70% |
| 5 years | 20.49% |
The average dividend growth is 20.49% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios provide insights into MSCI's ability to sustain dividend payments. With an EPS-based payout ratio of 43.98% and a Free Cash Flow-based ratio of 34.67%, the firm maintains a cautious approach, ensuring that dividends are well-covered by earnings and cash flow, thus mitigating risk during economic variability.
| Key Figure | Ratio |
|---|---|
| EPS-based | 43.98% |
| Free Cash Flow-based | 34.67% |
These payout ratios suggest that MSCI Inc. is in a comfortable position to continue its dividend payments, supported by sustainable earning levels and robust cash flow generation.
💸 Cashflow & Capital Efficiency
MSCI's capital efficiency is evident through its Free Cash Flow Yield of 3.30% and Earnings Yield of 2.60%. The CAPEX to Operating Cash Flow ratio is 3.97%, reflecting prudent investment without over-leveraging. This operational agility, along with a Free Cash Flow to Operating Cash Flow ratio of 97.75%, ensures a strong return on invested capital.
| 2022 | 2023 | 2024 |
|---|---|---|
| FCF Yield: 2.72% | FCF Yield: 2.55% | FCF Yield: 3.10% |
| Earn Yield: 2.32% | Earn Yield: 2.55% | Earn Yield: 2.35% |
| CAPEX/OFC: 6.65% | CAPEX/OFC: 7.35% | CAPEX/OFC: 2.25% |
| SBC/Rev: 2.58% | SBC/Rev: 2.83% | SBC/Rev: 3.33% |
| FCF/OCF: 93.35% | FCF/OCF: 92.65% | FCF/OCF: 97.75% |
| ROIC: 26.82% | ROIC: 28.43% | ROIC: 32.39% |
Overall, MSCI exhibits robust cash flow metrics and capital efficiency, indicative of its capacity to grow while sustaining attractive shareholder returns.
📊 Balance Sheet & Leverage Analysis
The financial leverage ratios of MSCI indicate its strategy of utilizing debt funding efficiently. Despite a negative Debt-to-Equity ratio resulting from share buybacks and strong profitability, its Net Debt to EBITDA of 2.41 is within acceptable industry standards, maintaining a balance between debt and equity in its capital structure.
| 2022 | 2023 | 2024 |
|---|---|---|
| Debt/Equity: -460.70% | Debt/Equity: -625.59% | Debt/Equity: -492.76% |
| Debt/Assets: 92.92% | Debt/Assets: 83.87% | Debt/Assets: 85.06% |
| Debt/Capital: 127.72% | Debt/Capital: 119.03% | Debt/Capital: 125.46% |
| Net Debt/EBITDA: 2.69 | Net Debt/EBITDA: 2.43 | Net Debt/EBITDA: 2.42 |
| Current Ratio: 84.26% | Current Ratio: 93.48% | Current Ratio: 84.76% |
| Quick Ratio: 136.85% | Quick Ratio: 93.48% | Quick Ratio: 84.76% |
| Fin. Leverage: -495.82% | Fin. Leverage: -745.94% | Fin. Leverage: -579.30% |
MSCI's balance sheet demonstrates high levels of financial leverage, but it remains well-managed with a focus on maintaining liquidity and operational efficiency.
✅ Fundamental Strength & Profitability
Through strong profitability indicators such as a robust Return on Assets and sustained Return on Equity, alongside satisfactory EBIT and EBITDA margins, MSCI underscores its capacity to generate value. The firm also prioritizes essential investments in R&D, aligning product evolution with industry demands.
| 2022 | 2023 | 2024 |
|---|---|---|
| ROE: -86.37% | ROE: -155.26% | ROE: -117.99% |
| ROA: 17.42% | ROA: 20.81% | ROA: 20.37% |
| Net Margin: 38.72% | Net Margin: 45.42% | Net Margin: 38.83% |
| EBIT Margin: 54.05% | EBIT Margin: 61.52% | EBIT Margin: 53.98% |
| EBITDA Margin: 60.39% | EBITDA Margin: 67.81% | EBITDA Margin: 61.20% |
| Gross Margin: 82.02% | Gross Margin: 82.34% | Gross Margin: 81.99% |
| R&D/Revenue: 4.77% | R&D/Revenue: 5.22% | R&D/Revenue: 5.55% |
MSCI's strong fundamentals are complemented by significant returns on capital and robust profit margins, ensuring long-term sustainability and competitiveness.
📉 Price Development
🎯 Dividend Scoring System
| Category | Score (1-5) | Illustrative Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 31/40
🗣️ Rating
MSCI Inc. presents a moderately high dividend investment potential with firm traditions in dividend stability and growth. The company's consistent payout history, coupled with sustainable financial practices, reiterates its strategic goal of long-term shareholder value creation. Investors seeking a reliable dividend source with moderate growth potential would find MSCI Inc. a fitting addition to their portfolios.