If you're looking for stocks that provide a dividend, growth
potential and steadier action, the IBD Big Cap 20 is worth
The latest lineup, which appeared in Tuesday's IBD, offers a
few stocks that fit the bill.
They includeBlackRock (
) andT. Rowe Price (
) -- featured in this column on Jan. 24 and Tuesday, respectively
-- as well asMotorola Solutions (
Motorola, one of the nation's oldest technology companies,
changed its name to Motorola Solutions in 2011 while spinning off
its mobile phone and set-top box operations as Motorola Mobility,
now part ofGoogle (
Schaumburg, Ill.-based Motorola Solutions makes telecom
equipment that ranges from two-way radios to bar-code scanners,
selling the gear to businesses and government agencies. It has
billed itself as the "worldwide leader in mission-critical and
The company has delivered three straight quarters of big
growth in EPS, with gains of 30%, 27% and 26%. Its quarterly
revenue increases have been more modest, coming in between 3% and
8% over the past three quarters.
Motorola Solutions sports a strong up-down volume ratio and a
B+ for its IBD Accumulation/Distribution Rating -- signaling that
some big investors are buying shares. However, throughout 2012,
the number of U.S. mutual and hedge funds with a stake stayed
flat or even declined.
In terms of chart action, Motorola Solutions is somewhat
extended after rallying off support at its 10-week moving average
in late January, when the company posted its latest quarterly
You also could view the stock as still in a possible buying
range after etching a three-weeks-tight pattern with a buy point
at 59.58. But note that volume wasn't as strong as you generally
want to see with a breakout. Also, the stock tends to trade
calmly, which makes the tight formation less distinctive.
Motorola Solutions pays a quarterly dividend of 26 cents per
share, having raised its payout last year from 22 cents per
share. That works out to an annualized yield of about 1.8%.