Moody's recently announced key events, including an 11% dividend increase and robust earnings for 2024, with net income and sales showing solid growth over the prior year. Despite these strong fundamentals, the company's share price declined by 8% over the past quarter. Contributing factors to Moody's price movement could include market-wide issues, like increased tariffs announced by the Trump administration, which have recently led to significant volatility. The broader market also faced declines, with the Dow and S&P 500 down due to economic uncertainty. However, Moody's proactive strategies, such as declaring a higher dividend and engaging in an aggressive share buyback program, suggest the company is working to deliver shareholder value amid these external pressures. While its forecast for high-single-digit revenue growth remains positive, external market factors appear to have overshadowed these developments, impacting the company's recent share price performance.

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Over the past five years, Moody's shares delivered a total return of 153.35%. This robust performance contrasts with the more recent market volatility. A key contributor to this growth was the company's aggressive share buyback program, which began in February 2020 and resulted in the repurchase of over 10 million shares for approximately US$3.69 billion. Furthermore, Moody's consistent focus on returning value to shareholders through dividends, with the most recent 11% increase, has likely reinforced investor confidence.

Moody's earnings growth exceeded that of the Capital Markets industry, growing by 28.1% in the past year compared to the industry's 17.2%. The company's strategic partnership with Microsoft, announced in June 2023, aimed to enhance data and analytics solutions, potentially strengthening its market position further. Additionally, Moody’s entry into Vietnam through the VIS Rating venture highlights its expansion efforts, potentially contributing to its impressive long-term performance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:MCO.

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