13 Best Warren Buffett Dividend Stocks To Invest In 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. The company operates through two primary segments: Moody’s Investors Service (MIS) and Moody’s Analytics (MA). MIS provides credit ratings for debt instruments and issuers, while MA delivers data, software, and advisory services centered on financial risk management. This dual approach enables Moody’s to generate revenue from both subscription-based services and fees for its ratings and analytics. The diversity of these segments helps protect the company from cyclical market fluctuations, ensuring a consistent revenue stream even during downturns in the credit ratings industry.

In the third quarter of 2024, Moody’s Corporation (NYSE:MCO) reported strong earnings, driven by the success of its highly-rated ratings franchise. The company generated $1.8 billion in revenue, marking a 23% increase compared to the same period last year. This robust revenue growth supported product development and innovation. In addition, Moody’s formed several strategic partnerships with leading industry firms to expand the reach and impact of its data and insights.

Moody’s Corporation (NYSE:MCO) is a solid company in terms of dividends, with its robust cash reserves ensuring it can maintain dividend payments for years to come. In the first nine months of the year, the company reported an operating cash flow of over $2.1 billion, and its free cash flow came in at $1.9 billion. Due to this cash position, the company was able to raise its payouts for 14 consecutive years. It currently pays a quarterly dividend of $0.85 and offers a dividend yield of 0.67%, as of February 10.