Motorola SolutionsMSI +1.36%94 5-Year Yield-on-Cost % is 1.90 as of Jul. 10, 2026, which is 16% below its 10-year median of 2.25. GuruFocus rates MSI with a GF Score™ of 94/100 and a GF Value™ of $459.94 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,402 Hardware companies, Motorola Solutions ranks worse than 50.57% on this metric.
Motorola Solutions's yield on cost for the quarter that ended in Mar. 2026 was 1.90.
The historical rank and industry rank for Motorola Solutions's 5-Year Yield-on-Cost % or its related term are showing as below:
MSI'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.33 Med: 2.25 Max: 3.98
Current: 1.9
During the past 13 years, Motorola Solutions's highest Yield on Cost was 3.98. The lowest was 1.33. And the median was 2.25.
MSI's 5-Year Yield-on-Cost % is ranked worse than 50.57% of 1402
companies
in the Hardware industry
Industry Median: 2
vs MSI: 1.90
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Motorola Solutions 5-Year Yield-on-Cost % Related Terms
MSI vs CIEN, LITE, HPE: 5-Year Yield-on-Cost % Comparison
For the Communication Equipment subindustry, Motorola Solutions's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Motorola Solutions 5-Year Yield-on-Cost % vs Hardware Industry
For the Hardware industry and Technology sector, Motorola Solutions's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Motorola Solutions's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Motorola Solutions (MSI) has a 5-Year Yield-on-Cost % of 1.90 as of Jul. 10, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Motorola Solutions and its competitors. This is 16% below median its historical median of 2.25. Over the past decade, Motorola Solutions' 5-Year Yield-on-Cost % has ranged from 1.33 to 3.98. According to the industry distribution chart, Motorola Solutions ranks #709 out of 1402 companies in the Hardware industry, placing it in the top 50.6%.
Is Motorola Solutions' 5-Year Yield-on-Cost % too high?
Motorola Solutions' current 5-Year Yield-on-Cost % of 1.90 is 16% below median its 10-year median of 2.25. Over the past 10 years, this metric has ranged from a low of 1.33 to a high of 3.98. The Hardware industry median 5-Year Yield-on-Cost % is 2.00. Motorola Solutions' value of 1.90 is 5% below this industry median. Based on the distribution chart, Motorola Solutions ranks #709 out of 1402 companies in the Hardware industry, which is below the industry midpoint. Overall, Motorola Solutions has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Motorola Solutions' 5-Year Yield-on-Cost % compare to CIEN and LITE?
According to the Hardware industry distribution chart, Motorola Solutions ranks #709 out of 1402 companies for 5-Year Yield-on-Cost %. This places Motorola Solutions in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 2.00. Motorola Solutions' value of 1.90 is 5% below this benchmark. Historically, Motorola Solutions' own 5-Year Yield-on-Cost % has ranged from 1.33 to 3.98 over the past decade. While the company's 10-year median is 2.25 vs. the industry median of 2.00, Motorola Solutions has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Hardware company?
The median 5-Year Yield-on-Cost % among Hardware companies is 2.00, based on 1,402 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Motorola Solutions's current 5-Year Yield-on-Cost % of 1.90 is 5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Motorola Solutions and its competitors. For the Hardware industry, the median 5-Year Yield-on-Cost % is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motorola Solutions's current 5-Year Yield-on-Cost % is 1.90, which is 16% below median its own 10-year median of 2.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motorola Solutions stock overvalued right now?
Based on GuruFocus' analysis, Motorola Solutions (MSI) is currently considered Fairly Valued. The stock's GF Value™ is $459.94, compared to a current price of $422.88 — trading 8.1% below its estimated fair value. The current 5-Year Yield-on-Cost % is 1.90, which is 16% below median its 10-year median of 2.25 and 5% below the Hardware industry median of 2.00. Motorola Solutions' overall GF Score™ is 94/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Motorola Solutions (MSI), the current 5-Year Yield-on-Cost % is 1.90 as of Jul. 10, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Motorola Solutions (MSI) Overvalued in 2026?
Based on GuruFocus' analysis, Motorola Solutions stock appears to be undervalued.
The current stock price of $422.88 is trading 8.1% below its estimated GF Value™ of $459.94.
GuruFocus considers Motorola Solutions to be Fairly Valued.
Key valuation signals for MSI:
5-Year Yield-on-Cost %: 1.90 (16% below median its 10-year median of 2.25)
GF Value™: $459.94 vs. price of $422.88 (8.1% below fair value)
Industry Position: 5% below the Hardware median (#709 of 1402)
No single metric tells the full story. See the MSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Motorola Solutions is a leading provider of communications and analytics, primarily serving public safety departments as well as schools, hospitals, and businesses. The bulk of the firm's revenue comes from sales of land mobile radios and radio network infrastructure, but the firm also sells surveillance equipment, dispatch software, and other networking capabilities. Most of Motorola's revenue comes from government agencies, while roughly 25% comes from schools and private businesses. Motorola has customers in over 100 countries and in every state in the United States.
94GF Score
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