June 27, 2025 a 02:47 am
📊 MSI: Dividend Analysis - Motorola Solutions, Inc.
Motorola Solutions, Inc. offers a notable dividend profile with a long history of payment and growth, reflecting stability and commitment to shareholders. With a dividend yield of 1.04% and a consistent annual growth rate, MSI remains attractive to income-focused investors. Its solid balance sheet and strategic capital deployment indicate potential for sustained payouts, making it a resilient choice for dividend portfolios.
🗣️ Overview
Motorola Solutions, Inc. positions itself as a reliable source of dividends within the technology sector. Its established track record of 54 consecutive years of dividends showcases its commitment to investor returns.
| Sector | Dividend Yield (%) | Current Dividend per Share (USD) | Dividend History (Years) | Last Cut or Suspension |
|---|---|---|---|---|
| Technology | 1.04 | 3.92 | 54 | None |
📉 Dividend History
The longevity of MSI's dividend payments indicates robust financial health and efficient operations. Such a history reassures shareholders of stable, long-term returns, underlying its growth and income generating capability over decades.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 2.18 |
| 2024 | 4.03 |
| 2023 | 3.62 |
| 2022 | 3.25 |
| 2021 | 2.92 |
📈 Dividend Growth
Continuous dividend growth further demonstrates the financial health and management's commitment to returning capital to shareholders. It is crucial in assessing the company's profitability and cash flow utilization.
| Time | Growth |
|---|---|
| 3 years | 11.34 % |
| 5 years | 11.39 % |
The average dividend growth is 11.39 % over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio is a critical indicator of dividend sustainability. It demonstrates how much of the company’s earnings and free cash flow is distributed as dividends, indicating possible future increases or potential restraints.
| Key figure | Ratio |
|---|---|
| EPS-based | 31.98 % |
| Free cash flow-based | 28.82 % |
The EPS-based payout ratio of 31.98% and FCF-based of 28.82% demonstrate a healthy coverage of dividends, indicating that MSI can comfortably sustain its current dividend payouts with room for potential growth.
💡 Cashflow & Capital Efficiency
Cash flow health directly impacts dividend affordability. It examines free cash flow yields and capital allocation ratios to indicate financial stability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 2.77 % | 3.43 % | 3.63 % |
| Earnings Yield | 2.05 % | 3.27 % | 3.16 % |
| CAPEX to Operating Cash Flow | 10.75 % | 12.38 % | 14.04 % |
| Stock-based Compensation to Revenue | 2.25 % | 2.12 % | 1.89 % |
| Free Cash Flow / Operating Cash Flow Ratio | 89.25 % | 87.62 % | 85.96 % |
The cash flow ratios showcase a strong utilization of resources, implying sound capital efficiency and cash flow stability that forms a robust foundation for future dividend payments.
⚖️ Balance Sheet & Leverage Analysis
The balance sheet appraisal highlights financial leverage and capital structure, focusing on debt management and liquidity ratios to assess financial survival and flexibility.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 3.85 | 9.05 | 56.47 |
| Debt-to-Assets | 0.45 | 0.49 | 0.51 |
| Debt-to-Capital | 0.79 | 0.90 | 0.98 |
| Net Debt to EBITDA | 1.68 | 1.76 | 2.32 |
| Current Ratio | 1.29 | 0.85 | 1.15 |
| Quick Ratio | 1.13 | 0.85 | 0.92 |
Despite elevated debt ratios, MSI maintains adequate liquidity as reflected in its current and quick ratios, indicating good financial health required to uphold its consistent dividend policy.
🛠️ Fundamental Strength & Profitability
A strong focus on profitability metrics, including return on equity, assets, and margins, shows financial health and operational efficiency, underlying the company’s ability to generate income.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 92.60 % | 236.05 % | 1175 % |
| Return on Assets | 10.81 % | 12.81 % | 10.64 % |
| Net Margins | 14.58 % | 17.13 % | 14.96 % |
| EBIT Margins | 20.96 % | 24.00 % | 19.26 % |
| EBITDA Margins | 24.54 % | 27.57 % | 24.77 % |
| Gross Margins | 50.96 % | 49.81 % | 46.41 % |
| Research & Development to Revenue | 8.48 % | 8.60 % | 8.55 % |
MSI displays strong profitability across numerous metrics, reinforcing its capacity for robust earnings, essential for backing its long-term dividend strategy.
📈 Price Development
🎯 Dividend Scoring System
| Criteria | Score (out of 5) | |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 31 out of 40 points
⭐ Rating
In summary, Motorola Solutions, Inc. holds an impressive position as a sustainable dividend payer, with strong growth potential supported by robust financial metrics. Its ability to maintain and potentially increase dividends makes it an attractive consideration for both conservative income-seekers and those looking for capital appreciation prospects.