Normal view

Received before yesterday

1 Magnificent S&P 500 Dividend Stock Down 18% to Buy Right Now for a Lifetime of Passive Income

So far this year, the S&P 500 has dropped as much as 16% from its highs by April, only to rally and gain all but 4 of these percentage points back.

Whether it's tariff concerns, an uncertain housing market, lower consumer confidence, or the implications of artificial intelligence (AI) disrupting the workforce, there is no shortage of news to spook investors.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

However, with this turbulence comes opportunity. This notion could be especially true if investors expand their time frame and remember to look at stocks through a three-year lens (if not one that's decades-long).

I believe public safety leader Motorola Solutions (NYSE: MSI) could prove to be one of these promising opportunities, particularly with its stock down 19% due to overblown tariff concerns.

Here's what sets this magnificent S&P 500 dividend growth stock apart and why it could be an excellent pick in today's uncomfortable market.

Motorola's many layers of safety

Motorola is a leader in the public safety niche, and its stock has been an eight-bagger over the last 10 years. It sells equipment for land-mobile radio (LMR) communication (walkie-talkies for police, for example), fixed and mobile video security and access control (including police body cameras), and command center solutions for 911 services.

The company also sells software and services that support each of these units, which now equal 36% of total revenue.

Close up shot of a police officer's chest, highlighting their body camera and walkie-talkie.

Image Source: Getty Images.

Recession-resilient products

With 5 million cameras deployed across 300,000 sites, 13,000 LMR networks set up worldwide, and a presence in 60% of the 911 call centers in the United States, Motorola has a massive role within public safety. Just as importantly, its products serve some of the most essential customer bases.

The company gets 70% of its sales from public safety agencies like police, fire, EMS, national security, and crucial infrastructure. The remaining 30% comes from private enterprises, most of which are also essential, like hospitals, utilities, schools, and manufacturers.

Motorola's redundant and "always on" LMR networks are essential to public safety, especially during natural disasters when cell towers may be down. Its police body cameras, fixed cameras for combating shoplifting, and 911 command center equipment are also must-haves, rounding out the company's suite of recession-resilient products.

Its multiyear LMR contracts, the recurring revenue from its software and services, and its all-important customer base offer investors a lot of stability.

Robust and rising free cash flow

The recurring revenue from its software and services grew from 21% of sales in 2015 to 36% today. This increase is noteworthy to investors because these cloud-based services come with much higher margins. Since 2016, the company's free cash flow (FCF) margin rose from 13% to 21% in 2025.

Fundamental Chart Chart

Fundamental Chart data by YCharts.

This improved FCF generation adds another layer of safety for investors thinking of buying Motorola, providing financial resilience and the ability to continue funding its dividend. Its ballooning FCF also funds Motorola's penchant as a successful serial acquirer.

Masterful M&A

Since 2015, Motorola spent $7 billion buying 29 businesses across each of the company's three product verticals. Though mergers and acquisitions (M&A) aren't typically seen as a safety feature for most stocks -- if anything, they're usually a significant risk -- management has a lengthy track record of success.

The company currently has a cash return on invested capital (ROIC) of 31%, placing it in the top 10% among its S&P 500 peers. This means Motorola earns outsized cash returns from the debt and equity it devotes to acquisitions, proving its mastery at scooping up and integrating new businesses.

This allows the company to diversify its products and services, fortifying its position as the top dog in the public safety space.

A police officer laughs while sitting and talking to two young children.

Image Source: Getty Images.

The dividend looks poised to keep going higher

Though Motorola's 1% dividend yield may not scream "lifetime passive income," its dividend growth does. With 12 consecutive years of payout increases, the company's passive income potential could prove to be massive.

MSI Dividend Chart

MSI Dividend data by YCharts.

To give some context to this steadily growing dividend, investors who purchased the stock in 2012 would now be receiving a 9% yield compared to their original cost basis.

Said another way, dividend growth stocks like Motorola often become high-yield dividend stocks if held long enough. Looking a decade down the road, I'm hoping to re-create these results.

Best yet for investors, the company's dividend payments should keep rising for years to come, for two key reasons. First, it currently only uses 30% of its FCF for its dividend payments, leaving plenty of wiggle room for future increases. Management could technically double its dividend payments tomorrow and still have excess cash for capital expenditures and M&A activity.

Second, the company's backlog continues to skew more heavily toward higher-margin software and services sales. This shift means that its FCF and margins could continue increasing, creating even more cash to return to shareholders over time.

Backed by the company's safe and stable operations, this steadily growing dividend makes Motorola one of my favorite investments for growing my long-term passive income, especially in a volatile market.

Should you invest $1,000 in Motorola Solutions right now?

Before you buy stock in Motorola Solutions, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Motorola Solutions wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $617,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $719,371!*

Now, it’s worth noting Stock Advisor’s total average return is 909% — a market-crushing outperformance compared to 163% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The best laptops for gaming and schoolwork in 2025

23 April 2025 at 09:00

Finding a laptop that can juggle both gaming and schoolwork isn’t as tricky as it used to be. These days, you don’t have to choose between a machine that can handle your homework and one that can keep up with your favorite games. Whether you’re diving into an essay, editing video for a project or hopping into a round of Fortnite or Baldur’s Gate 3 after class, there are plenty of laptops that strike the right balance between performance, portability and price.

The key is knowing what to look for. A solid gaming and schoolwork laptop should have enough processing power for multitasking, a GPU that can handle modern games (even if you're not cranking settings to ultra) and decent battery life to get you through a day of classes or study sessions. Some are sleek and lightweight enough to slip into a backpack while others double as full-on gaming rigs when you’re home and plugged in. We’ve tested a range of laptops to help you find one that fits your student schedule and your Steam library.

Best laptops for gaming and school in 2025

Best laptop for gaming and schoolwork FAQs

Are gaming laptops good for school?

As we’ve mentioned, gaming laptops are especially helpful if you're doing any demanding work. Their big promise is powerful graphics performance, which isn't just limited to PC gaming. Video editing and 3D rendering programs can also tap into their GPUs to handle laborious tasks. While you can find decent GPUs on some productivity machines, like Dell's XPS 15, you can sometimes find better deals on gaming laptops. My general advice for any new workhorse: Pay attention to the specs; get at least 16GB of RAM and the largest solid state drive you can find (ideally 1TB or more). Those components are both typically hard to upgrade down the line, so it’s worth investing what you can up front to get the most out of your PC gaming experience long term. Also, don’t forget the basics like a webcam, which will likely be necessary for the schoolwork portion of your activities.

The one big downside to choosing a gaming notebook is portability. For the most part, we'd recommend 15-inch models to get the best balance of size and price. Those typically weigh in around 4.5 pounds, which is significantly more than a three-pound ultraportable. Today's gaming notebooks are still far lighter than older models, though, so at least you won't be lugging around a 10-pound brick. If you’re looking for something lighter, there are plenty of 14-inch options these days. And if you're not into LED lights and other gamer-centric bling, keep an eye out for more understated models that still feature essentials like a webcam (or make sure you know how to turn those lights off).

Do gaming laptops last longer than standard laptops?

Not necessarily — it really depends on how you define "last longer." In terms of raw performance, gaming laptops tend to pack more powerful components than standard laptops, which means they can stay relevant for longer when it comes to handling demanding software or modern games. That makes them a solid choice if you need a system that won’t feel outdated in a couple of years, especially for students or creators who also game in their downtime.

But there’s a trade-off. All that power generates heat, and gaming laptops often run hotter and put more strain on internal components than typical ultraportables. If they’re not properly cooled or regularly maintained (think dust buildup and thermal paste), that wear and tear can shorten their lifespan. They’re also usually bulkier and have shorter battery life, which can impact long-term usability depending on your daily needs.

Gaming laptops can last longer performance-wise, but only if you take good care of them. If your needs are light — browsing, writing papers and streaming — a standard laptop may actually last longer simply because it’s under less stress day-to-day.

What is the role of GPU in a computer for gaming and school?

The GPU plays a big role in how your laptop handles visuals — and it’s especially important if you’re using your computer for both gaming and school.

For gaming, the GPU is essential. It’s responsible for rendering graphics, textures, lighting and all the visual effects that make your favorite titles look smooth and realistic. A more powerful GPU means better frame rates, higher resolutions and the ability to play modern games without lag or stuttering.

For schoolwork, the GPU matters too — but its importance depends on what you're doing. If your school tasks mostly involve writing papers, browsing the web or using productivity tools like Google Docs or Microsoft Office, you don’t need a high-end GPU. But if you’re working with graphic design, video editing, 3D modeling or anything else that’s visually demanding, a good GPU can speed things up significantly and improve your workflow.

Georgie Peru contributed to this report.

This article originally appeared on Engadget at https://www.engadget.com/computing/laptops/best-laptops-for-gaming-and-school-132207352.html?src=rss

©

© Will Lipman Photography for Engadget

The best laptops for gaming and schoolwork
❌