MSCI Inc.

MSCI is the leading provider of stock indexes, portfolio analytics and increasingly ESG and climate data that asset managers use to build and benchmark funds. Its indexes underpin a vast pool of passive investment products, creating a licensing model with high margins and heavy recurring revenue that grows as index-linked assets expand. MSCI has increased its dividend every year since it began paying one over a decade ago, and pairs those raises with sizeable buybacks. The yield is low, a function of a richly valued growth stock, but the underlying payout benefits from a capital-light, subscription-heavy business. It suits investors who prioritise dividend growth and quality over immediate income.