7. Motorola Solutions, Inc. (NYSE:MSI)
Number of Hedge Fund Holders: 48
Motorola Solutions, Inc. (NYSE:MSI) ranks seventh on our list of the best telecom dividend stocks. The American technology, communications, and security company plays a pivotal role in the communications industry, focusing on mission-critical communications and analytics. The company provides integrated technologies and services across segments such as LMR, Video Security and Access Control, and Command Center software. Its primary aim is to seamlessly integrate these solutions into unified ecosystems that enhance safety and security. In addition, the company’s ongoing investment in research and development highlights its dedication to improving product interoperability and delivering innovations that cater to a wide range of customers, including those in government and commercial sectors. the stock has surged by nearly 49% in 2024 so far.
Wedgewood Partners made the following comment about MSI in its Q3 2024 investor letter:
“Motorola Solutions, Inc. (NYSE:MSI) was another top contributor to performance as the Company continued its steady execution with +9% year-over-year sales growth and +22% adjusted earnings per share growth. While Motorola’s backlog for products declined, much of it was due to accelerated revenue recognition on strong deliveries for its Land Mobile Radio” (LMR) business – a critical long-term solution for emergency services around the globe. The technology behind LMR is quite simple; however, it is an extremely robust implementation that needs to withstand regular and even mega catastrophes (e.g., hurricanes) in order to guarantee uptime for the emergency services that depend on it for communications. The Company has superlative, unmatched competitive positioning in this core business and should be able to continue to expand value-added service offerings to LMR and drive attractive long-term growth.” (Click here to read the full text)
Motorola Solutions, Inc. (NYSE:MSI) reported strong earnings in the third quarter of 2024. The company posted revenue of $2.79 billion, up over 9.15% from the same period last year. Sales in the Products and Systems Integration segment increased by 11%, while the Software and Services segment saw a 7% rise. Excluding sales to the UK Home Office, growth in the Software and Services segment reached 13%.
In addition, Motorola Solutions, Inc. (NYSE:MSI)’s cash position also remained stable during the quarter. The company’s operating cash flow of $759 million showed growth from $714 million in the prior-year period. Its free cash flow came in at $702 million, up from $649 million in the year-ago quarter. The company also returned $164 million to shareholders through dividends. This strong cash position allowed the company to increase its payouts for 13 consecutive years. Currently, it offers a quarterly dividend of $0.98 per share for a dividend yield of 0.94%, as recorded on December 19.
Insider Monkey’s database of Q3 2024 indicated that 48 hedge funds held stakes in Motorola Solutions, Inc. (NYSE:MSI), growing from 42 in the previous quarter. The total value of these stakes is more than $1.3 billion. Among these hedge funds, Orbis Investment Management was the company’s leading stakeholder in Q3.
