7 Best Warren Buffett Dividend Stocks According to Short Sellers

2. Moody’s Corporation (NYSE:MCO)

Short % of Shares Outstanding: 0.85%

An American financial services company, Moody’s Corporation (NYSE:MCO) ranks second on our list of the best Warren Buffett dividend stocks according to short sellers. The company offers credit ratings and analytical solutions to investors and businesses. Since the start of 2024, the stock has surged by nearly 25% and its 12-month returns came in at roughly 40%. One of the main reasons for the stock’s outperformance is that its risk analysis and credit ratings business continue to perform well.

In the second quarter of 2024, Moody’s Corporation (NYSE:MCO) reported robust earnings, thanks to the success of its top-rated ratings franchise. It achieved revenue of $1.8 billion, reflecting a 21% increase compared to the same period last year. This double-digit revenue growth bolstered product development and innovation. In addition, the company established several promising strategic partnerships with leading industry firms to broaden the availability and impact of its data and insights.

Moody’s Corporation (NYSE:MCO) is a strong company from a dividend point of view. The company’s strong cash reserves are sufficient to sustain dividend payments for many years to come. In the first six months of 2024, it reported an operating cash flow of over $1.4 billion, up from $1.2 billion in the same period last year. The free cash flow also jumped to $1.3 billion, from $1.08 billion in the prior-year period. The company’s dividend growth streak spans over 14 years, which makes MCO one of the best Warren Buffett dividend stocks. It offers a per-share dividend of $0.85 every quarter and the stock has a dividend yield of 0.71%, as of September 15.

Moody’s Corporation (NYSE:MCO) was included in 59 hedge fund portfolios at the end of Q2 2024, compared with 60 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds are collectively valued at nearly $21 billion. TCI Fund Management was one of the company’s leading stakeholders in Q2.