Back to Main

New Highs And Higher Payout For Motorola Solutions

By: Investor's Business Daily
Posted: 2/5/2013 5:33:00 PM
Referenced Stocks: BLK;GOOG;MSI;TROW

If you're looking for stocks that provide a dividend, growth potential and steadier action, the IBD Big Cap 20 is worth checking out.

The latest lineup, which appeared in Tuesday's IBD, offers a few stocks that fit the bill.

They includeBlackRock ( BLK ) andT. Rowe Price ( TROW ) -- featured in this column on Jan. 24 and Tuesday, respectively -- as well asMotorola Solutions ( MSI ).

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 ( GOOG ).

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 business-critical applications."

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 results.

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%.