Buying quality stocks on pullbacks is never a bad idea, and Motorola Solutions (MSI) is a quality stock offering such an opportunity, suggests Chuck Carlson, dividend reinvestment specialist and editor of DRIP Investor.

Indeed, shares are trading at a roughly 10% discount to their 52-week high of around $182 per share. The firm had a solid third quarter, with per-share profits beating estimates and the backlog and cash flow growing nicely.

Motorola Solutions provides communications solutions. It offers communications infrastructure devices and solutions including portable radios, video cameras, and radio network processing software. Customers include government, public safety and first-responder agencies, and industrial customers.

The company has good momentum going into the end of the year. For the third quarter, revenue rose 7%, with organic revenue up 4%. The company’s per-share profits of $2.04 beat the consensus analysts’ estimate by $0.09. Operating margins rose 120 basis points during the quarter.

The backlog at the end of the quarter was $11 billion, the company’s highest backlog ever and up 17% year over year. Finally, operating cash flow in the quarter was up 55% to $525 million.

The strong third-quarter performance is a factor behind the company boosting its 2019 earnings guidance to $7.77 and $7.82, up from prior guidance of $7.67 to $7.77. The recent 12% dividend hike is consistent with the upward glide path of the company’s dividend.

Indeed, the payout has nearly doubled since 2014, and future dividend increases should be in the 8%-10% range. The stock offers an attractive opportunity for long-term investors.

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