An Analysis of Motorola Solutions Inc's Dividend History, Yield, and Growth
Motorola Solutions Inc (MSI, Financial) recently announced a dividend of $0.88 per share, payable on October 13, 2023, with the ex-dividend date set for September 14, 2023. As investors anticipate this forthcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Leveraging the data from GuruFocus, we delve into Motorola Solutions Inc's dividend performance and evaluate its sustainability.
Understanding Motorola Solutions Inc
Motorola Solutions is a leading provider of communications and analytics, primarily serving public safety departments as well as schools, hospitals, and businesses. The majority of the firm's revenue is derived from sales of land mobile radios and radio network infrastructure, but the firm also sells surveillance equipment and dispatch software. Most of Motorola's revenue comes from government agencies, while about 25% comes from schools and private businesses. Motorola has customers in over 100 countries and in every state in the United States.
A Glimpse at Motorola Solutions Inc's Dividend History
Motorola Solutions Inc has maintained a regular dividend payment record since 2011, with dividends currently distributed on a quarterly basis. Motorola Solutions Inc has increased its dividend each year since 2011, earning it the status of a dividend achiever, a title bestowed upon companies that have increased their dividend each year for at least the past 12 years.
Breaking Down Motorola Solutions Inc's Dividend Yield and Growth
As of today, Motorola Solutions Inc currently has a 12-month trailing dividend yield of 1.22% and a 12-month forward dividend yield of 1.25%, suggesting an expectation of increased dividend payments over the next 12 months.
Over the past three years, Motorola Solutions Inc's annual dividend growth rate was 11.40%. This rate decreased to 11.00% per year on a five-year horizon. However, over the past decade, Motorola Solutions Inc's annual dividends per share growth rate stands at an impressive 12.70%.
Based on Motorola Solutions Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Motorola Solutions Inc stock as of today is approximately 2.06%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of June 30, 2023, Motorola Solutions Inc's dividend payout ratio is 0.39.
Motorola Solutions Inc's profitability rank is 8 out of 10 as of June 30, 2023, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
Motorola Solutions Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Motorola Solutions Inc's revenue has increased by approximately 5.70% per year on average, a rate that outperforms approximately 54.39% of global competitors. The company's 3-year EPS growth rate shows its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Motorola Solutions Inc's earnings increased by approximately 17.00% per year on average, a rate that outperforms approximately 55.79% of global competitors.
Conclusion
In conclusion, Motorola Solutions Inc's consistent dividend payments, impressive dividend growth rate, reasonable payout ratio, good profitability, and strong growth metrics make it an attractive prospect for dividend-focused investors. However, as with any investment, it's crucial to conduct thorough research and consider the company's financial health and market position before making a decision.
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