spin off

INTERNATIONAL BUSINESS MACHINES CORP., $128.25, New York symbol IBM, is still a buy.

The company is one of the world’s largest computer firms, with operations in over 175 countries.

On November 3, 2021, IBM completed the spinoff of Kyndryl Holdings Inc....

SUNCOR ENERGY INC., $39.32, Toronto symbol SU, is a buy.

The company is Canada’s largest integrated oil firm, with major projects in the Alberta oil sands. Suncor also operates four refineries (three in Canada and one in Colorado), along with 1,875 Petro-Canada gas stations.

With the June 2022 payment, Suncor increased your quarterly dividend by 11.9%....

A key reason behind our enthusiasm for spinoffs is that the newly spun-off firm could become an attractive takeover target. For example, several firms would probably be interested in buying Aramark’s uniforms business following its spinoff in order to take on industry leader Cintas....

DANAHER CORP. $251 is a buy. The company (New York symbol DHR; Manufacturing & Industry sector; Shares outstanding 715.9 million; Market cap: $179.7 billion; Dividend yield: 0.4%; Takeover Target Rating: Medium; www.danaher.com) is a leading maker of precision-testing equipment and tools....

Foodmaker Kellogg now plans to split into three separate firms. That will divides its mature cereal segment from the faster-growing, more trendy categories of snacks and plant-based foods. While the split should unlock value, rising costs for ingredients, packaging and shipping could offset those benefits....

SUNCOR ENERGY INC. $40 is still a buy. The company (Toronto symbol SU; Resources sector; Shares outstanding: 1.44 billion; Market cap: $57.6 billion; Dividend yield: 4.7%; Takeover Target Rating: Medium; www.suncor.com) is Canada’s largest integrated oil firm, with major projects in the Alberta oil sands....

DUPONT DE NEMOURS INC., $55.58 symbol DD on New York, formerly known as DowDuPont, took its current form on June 1, 2019, when it set up Corteva (its agriculture business) as a separate company (symbol CTVA on New York and a recommendation of our Power Growth Investor newsletter)....

A: Zimmer Biomet Holdings Inc., $109.48, symbol ZBH on New York (Shares outstanding: 209.6 million; Market cap: $22.7 billion; www.zimmerbiomet.com), manufactures orthopedic reconstructive implants and surgical equipment for orthopedic surgeries....

KELLOGG COMPANY, $70.72, symbol K on New York, is a major maker of food products in North America and the rest of the world. Its well-known brands include Pringles, Special K, Pop-Tarts, Rice Krispies, Eggo, MorningStar Farms, and many more.

On June 21, 2022, Kellogg announced that it plans to separate into three independent public companies through a tax-free spinoff of its North American (U.S., Canadian, and Caribbean) cereal business, as well as the spinoff its plant-based foods business....

PFIZER INC. $49 is a buy. The prescription drugmaker (New York symbol PFE; Manufacturing & Industry sector; Shares outstanding: 5.6 billion; Market cap: $274.4 billion; Dividend yield: 3.3%; Takeover Target Rating: Medium; www.pfizer.com) merged its consumer drug business with GlaxoSmithKline (New York symbol GSK) in 2019.


Glaxo now plans to spin off this business as a separate firm called Haleon; it owns 68% of this operation, with Pfizer holding the remaining 32%....