July 23, 2026 a 07:30 am
MSCI: Dividend Analysis - MSCI Inc.
MSCI Inc. exhibits a dividend profile characterized by consistent growth and steady yield. Over the past 13 years, the company has demonstrated commitment to shareholder returns, emphasizing both stability and growth, noteworthy in the challenging equity and capital market conditions. Given the balance between a manageable payout ratio and a respectable growth rate, MSCI stands as a dependable choice for income-focused investors. However, the company’s negative return on equity warrants careful consideration.
📊 Overview
MSCI Inc. operates within the financial sector, exhibiting a dividend yield of 1.39%. The current dividend per share sits at $7.21, reflecting 13 years of dividend history. Notably, there has been no recent dividend cut or suspension, a testament to the company's financial resilience and commitment to returns.
| Aspect | Details |
|---|---|
| Sector | Financial |
| Dividend yield | 1.39% |
| Current dividend per share | $7.21 USD |
| Dividend history | 13 years |
| Last cut or suspension | None |
🗣️ Dividend History
An impressive track record of raising dividends enhances investor confidence in MSCI. This consistent trajectory of payment bolsters the company's reputation for effectively managing shareholder value, essential for long-term investment decisions.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | $6.15 |
| 2025 | $7.20 |
| 2024 | $6.40 |
| 2023 | $5.52 |
| 2022 | $4.58 |
📈 Dividend Growth
The company's ability to grow its dividends by 16.28% over the last 3 years and by 19.78% over the last 5 years shows a commitment to rewarding its shareholders. Steady dividend growth often correlates with financial health and sustainable business operations.
| Time | Growth |
|---|---|
| 3 years | 16.28% |
| 5 years | 19.78% |
The average dividend growth is 19.78% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios are crucial to evaluate a company's sustainability in paying annual dividends. With an EPS-based payout of 38.77% and an FCF-based payout ratio of 32.81%, MSCI demonstrates a healthy approach to returning earnings and cash flows to shareholders while retaining adequate resources for growth and development.
| Key figure | Ratio |
|---|---|
| EPS-based | 38.77% |
| Free cash flow-based | 32.81% |
These ratios suggest that MSCI maintains a prudent dividend policy, balancing shareholder returns with reinvestment in the business.
💸 Cashflow & Capital Efficiency
Understanding cash flow stability and capital efficiency is vital for predicting a company's ability to sustain its dividend payments. MSCI shows healthy metrics, indicative of operational efficiency and strategic reinvestment in core business drivers.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 2.55% | 3.11% | 3.50% |
| Earnings Yield | 2.56% | 2.35% | 2.72% |
| CAPEX to Operating Cash Flow | 7.35% | 2.25% | 2.47% |
| Stock-based Compensation to Revenue | 2.83% | 3.33% | 3.55% |
| Free Cash Flow / Operating Cash Flow Ratio | 92.65% | 97.75% | 97.52% |
The data reflects MSCI’s efficient capital allocation and cash flow management, although consistency in free cash flow yield could be further improved.
⚠️ Balance Sheet & Leverage Analysis
The company's leverage ratios indicate a significant reliance on debt financing, as evidenced by negative equity figures. This high debt load may pose a risk in adverse market conditions but is managed by a solid interest coverage ratio.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | -6.26 | -4.95 | -2.39 |
| Debt-to-Assets | 83.87% | 85.52% | 111.15% |
| Debt-to-Capital | 119.03% | 125.29% | 172.06% |
| Net Debt to EBITDA | 2.43 | 2.43 | 3.01 |
| Current Ratio | 0.93 | 0.85 | 0.89 |
| Quick Ratio | 0.93 | 0.85 | 0.90 |
| Financial Leverage | -7.46 | -5.79 | -2.15 |
Despite the high debt levels, the company's liquidity ratios reflect adequate covering of short-term liabilities, a critical factor in maintaining financial flexibility.
📉 Fundamental Strength & Profitability
Evaluating MSCI's fundamental metrics reveals an unusual negative return on equity but maintains robust margins and satisfactory returns from assets. These figures point to efficient operations, despite challenges related to equity structures.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | -155.26% | -117.99% | -45.29% |
| Return on Assets | 20.81% | 20.37% | 21.08% |
| Net Margin | 45.42% | 38.83% | 38.36% |
| EBIT Margin | 61.52% | 53.98% | 54.37% |
| EBITDA Margin | 67.81% | 61.20% | 61.64% |
| Gross Margin | 82.34% | 81.99% | 82.44% |
| Research & Development to Revenue | 5.22% | 5.55% | 5.67% |
MSCI's operations reflect high profitability, supported by efficient assets and cost management strategies.
📈 Price Development
📋 Dividend Scoring System
| Criteria | Description | Score |
|---|---|---|
| Dividend yield | Moderate Yield | |
| Dividend Stability | Consistent Payouts | |
| Dividend growth | Steady Growth | |
| Payout ratio | Sustainable | |
| Financial stability | Leveraged | |
| Dividend continuity | No Cuts | |
| Cashflow Coverage | Adequate Coverage | |
| Balance Sheet Quality | Robust |
Total Score: 29/40
📈 Rating
Overall, MSCI Inc. presents a relatively strong dividend profile with promising growth prospects and consistent payout history. The current financial leverage suggests caution, yet given the robust profitability margins and adequate cash flow coverage, MSCI remains a viable investment for yield-oriented portfolios seeking moderate risk exposure.
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