12 Best Financial Sector Dividend Stocks To Buy Right Now

8. Moody’s Corporation (NYSE:MCO)

Number of Hedge Fund Holders: 67

Moody’s Corporation (NYSE:MCO) is an American multinational financial services company. It recently reported its Q4 2024 earnings, with revenues coming in at $1.67 billion. The revenue, though, showed a 13% growth from the same period last year, missed analysts’ estimates by $40.6 million. Moody’s Analytics reported an 8% increase in revenue, reaching $863 million, driven by strong performance in the banking and insurance sectors. At the same time, MIS experienced significant growth, with revenue climbing 18% to $809 million, largely due to a 29% surge in transactional revenue, supported by increased corporate finance activity.

Moody’s Corporation (NYSE:MCO)’s emphasis on innovation, coupled with expectations of macroeconomic stability, provides a strong foundation for future growth. For 2025, the company expects high-single-digit revenue growth, with Adjusted Diluted EPS projected between $14.00 and $14.50. Management remains confident in capitalizing on favorable market conditions through strategic execution across both business segments.

Moody’s Corporation (NYSE:MCO) is a solid dividend payer with a stable cash position. In FY24, the company generated an operating cash flow of over $2.8 billion, up from $2.1 billion in 2023. Its free cash flow also grew to $2.5 billion, from 41.88 billion in a year-ago period. The growth in operating cash flow and free cash flow was largely attributed to a rise in net income, driven by strong revenue expansion across both business segments. The company also declared an 11% increase in its quarterly dividend to $0.94 per share. Through this increase, the company stretched its dividend growth streak to 15 years. The stock has a dividend yield of 0.72%, as of February 16.