A portfolio of stocks I've been building since September 3 is named Volio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the second of five technology sector stocks striving to join my Volio folio. This could be the sixteenth pick for Volio!
That technology sector has nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, information technology, and services, to internet, scientific instruments, software, solar, and all such techno-marvels.
My subject today is a large-cap communication equipment firm, named, Motorola Solutions Inc. Their trading ticker symbol is MSI. This is my first ever report on MSI.
Motorola Solutions provides communication infrastructure, devices, accessories, software, and services. The company operates two segments: products and systems integration, and services and software.
The products and systems integration segment offers a portfolio of infrastructure, devices, accessories, video solutions, and the implementation, optimization, and integration of such systems, devices, and applications.
The services and software segment provides a broad range of solution offerings for government, public safety, and commercial communication networks. It offers a variety of services such as repair, technical support and maintenance, monitoring, software updates, and cybersecurity services.
The company was formerly known as Motorola, Inc. and changed its name to Motorola Solutions, Inc. in January 2011.
Motorola Solutions, Inc. was founded in 1928 and is headquartered in Chicago, Illinois.
I use three key data points to gauge dividend-paying equities or funds like Motorola Solutions Inc:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
MSI Price
Motorola's price per share closed at $161.32 yesterday. A year ago its price was $123.24. So, in the past year, its price moved up $38.09, or nearly 31%.
Assuming Motorola's stock trades in the same range of $140 to $190 this next year, it's recent $161.32 price could rise by $19.63 to reach $181.00 by mid-December, 2020, assuming upward price momentum returns.
MSI Dividends
Motorola's latest declared quarterly dividend was $0.64 per share payable January 15th.
That $0.64 Q dividend equates to $2.56 annually and yields just 1.59% based on yesterday's $161.32 closing price.
MSI Gains?
Adding the $2.56 annual estimated dividend to my $19.63 optimistic estimate of Motorola's price upside shows a $22.19 potential gross gain, per share, which will be reduced by any costs to trade these shares.
As, for costs, a little under $1,000.00 invested today in Motorola Solutions Inc at its recent $161.32 price, would buy 6 shares of MSI.
A $10 broker fee paid half at purchase and half at sale could cost us about $1.67 per share.
Subtract that $1.67 brokerage cost from the estimated $22.19 gross estimated gain per share leaves a net gain of $20.52 X 6 shares = $123.12 or a 12.3% net gain on a $967.92 investment.
Therefore, Motorola Solutions Inc, whose trading ticker symbol is MSI shows a possible 12.3% net gain including a 1.59% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if Motorola Solutions Inc, is worth your time and money.
Comments
Log in or sign up to join the conversation.