Moody’s Corporation (NYSE:MCO) Announces Dividend Increase – $1.03 Per Share

Moody’s Corporation (NYSE:MCO) declared a quarterly dividend on Wednesday, February 18th. Shareholders of record on Monday, March 2nd will be paid a dividend of 1.03 per share by the business services provider on Friday, March 13th. This represents a c) dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Monday, March 2nd. This is a 9.6% increase from Moody’s’s previous quarterly dividend of $0.94.

Moody’s has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 16 consecutive years. Moody’s has a payout ratio of 24.4% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Moody’s to earn $15.60 per share next year, which means the company should continue to be able to cover its $3.76 annual dividend with an expected future payout ratio of 24.1%.

Moody’s Price Performance

Shares of NYSE:MCO opened at $450.09 on Thursday. The stock has a market cap of $80.30 billion, a PE ratio of 36.18, a PEG ratio of 1.96 and a beta of 1.44. The company’s fifty day moving average is $498.58 and its 200 day moving average is $494.79. The company has a quick ratio of 1.84, a current ratio of 1.84 and a debt-to-equity ratio of 1.70. Moody’s has a 52 week low of $378.71 and a 52 week high of $546.88.

Moody’s (NYSE:MCO) last issued its earnings results on Wednesday, February 18th. The business services provider reported $3.64 earnings per share for the quarter, beating the consensus estimate of $3.39 by $0.25. Moody’s had a return on equity of 63.58% and a net margin of 29.92%.The company had revenue of $1.89 billion during the quarter, compared to analysts’ expectations of $1.87 billion. During the same period in the prior year, the business posted $2.62 EPS. Moody’s’s quarterly revenue was up 13.0% compared to the same quarter last year. Moody’s has set its FY 2026 guidance at 16.400-17.000 EPS. Research analysts anticipate that Moody’s will post 13.95 earnings per share for the current year.

Insider Transactions at Moody’s

In other news, CEO Robert Fauber sold 575 shares of the business’s stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $498.90, for a total value of $286,867.50. Following the transaction, the chief executive officer directly owned 61,082 shares in the company, valued at $30,473,809.80. The trade was a 0.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.14% of the company’s stock.

Hedge Funds Weigh In On Moody’s

A number of hedge funds and other institutional investors have recently modified their holdings of MCO. Rexford Capital Inc. bought a new position in shares of Moody’s during the 2nd quarter valued at about $25,000. Newbridge Financial Services Group Inc. bought a new stake in Moody’s in the second quarter worth $25,000. Birchwood Financial Partners Inc. purchased a new position in shares of Moody’s during the fourth quarter valued at approximately $26,000. Caitlin John LLC bought a new position in shares of Moody’s in the third quarter worth about $27,000. Finally, Johnson Financial Group Inc. purchased a new position in shares of Moody’s during the second quarter worth approximately $28,000. Institutional investors own 92.11% of the company’s stock.

About Moody’s

Moody’s Corporation is a global provider of credit ratings, research, data and analytics that support financial decision-making and transparency in capital markets. The company traces its origins to the early 20th century when financial analyst John Moody began publishing credit information; today Moody’s is headquartered in New York and serves a broad set of market participants including investors, issuers, financial institutions, corporations, governments and regulators.

Moody’s operates primarily through two complementary businesses.