You Won't Believe How Much Money Berkshire Hathaway Gets From Moody's Dividends
Key Points
Berkshire Hathaway received Moody's stock when it was spun off from Dun & Bradstreet in 2000.
The ratings agency's stock may have a low yield today, but over time the dividend keeps growing.
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Warren Buffett loves dividend stocks, and even though he's no longer at the helm of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), these investments remain a core group of its equity positions.
Many investors are familiar with Buffett's admiration for his trio of favorite stocks: Coca-Cola, American Express, and Apple, but less so with some of his smaller positions, like Moody's (NYSE: MCO). Moody's stock makes up 3.6% of Berkshire's whole portfolio, and it fits the Buffett schema for its dominant position in an industry that can withstand economic turbulence, as well as its dividend.
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At the current stock price, Moody's dividend yields only 0.85%, but investors should look at the bigger picture when considering dividend stocks. Features like reliability and growth are important for dividends, and you don't have to look further than how much money Berkshire Hathaway makes from Moody's dividends to see why.
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Berkshire Hathaway received shares of Moody's stock in 2000 when it was spun off from Dun & Bradstreet. Although it originally had 48 million shares, it has sold off shares at different times and currently owns almost 25 million, worth about $11 billion. The cost basis for the position was $248 million, which means the investment itself has increased 4,400%. But Berkshire Hathaway has gained much more than that in annual dividends.
Moody's annual dividend right now is $4.12, and the cost basis per share is $10, making the yield on cost basis 41.2%. Berkshire Hathaway made $93 million in dividends from Moody's stock in 2025, which means it makes back its entire investment in dividends every few years. As management continues to raise the dividend, the yield on the cost basis will increase, too.
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American Express is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in American Express and Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Moody's and is short shares of Apple. The Motley Fool has a disclosure policy.
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