spinoffs
A spinoff takes place when a company decides to get rid of a portion of its asset base, possibly because it wants to focus its activities elsewhere, but is unable to sell the assets for a price that it feels reflects their value. Instead, the parent company sets the assets up as a separate company, then hands out shares in that publicly listed firm to its current investors.
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Over the years, we’ve found that spinoffs are about as close as you can get to a sure thing in investing. Statistics show that after a company sets up one (or more) of its businesses or divisions as a separate entity and “spins it off,” or hands it out to its shareholders as a special dividend, the shares of both the parent and the spinoff generally do better than comparable companies for a number of years, if not decades....
United Technologies gifted its investors with two spinoffs following its April merger with Raytheon Co. For each UTX share they held, investors received 0.5 of a share in Otis (elevators) and 1 share in Carrier (heating and air conditioning equipment).
We’re confident these two spinoffs will move higher for you in the next few years....
Your best portfolio pick will almost always come from a high-quality stock with a history of paying dividends
Swiss pharmaceutical giant Novartis spun off Alcon just last year. And as we’ve said many times before, spinoffs are the closest thing you can find to a sure thing, regardless of market ups and downs.
Alcon also gives you two other exciting ways to profit....
Alcon also gives you two other exciting ways to profit....
BLACKBERRY LTD. $6.92 is still a hold. The company (Toronto symbol BB; Manufacturing & Industry sector; Shares outstanding: 552.0 million; Market cap: $3.8 billion; No dividend paid; Takeover Target Rating: Medium; www.blackberry.com) quit developing smartphones in 2016 to concentrate on its more-promising security software....
DANAHER CORP. $176 is still our #1 Spinoff Buy for 2020. The company (New York symbol DHR; Manufacturing & Industry sector; Shares outstanding 707.2 million; Market cap: $124.5 billion; Dividend yield: 0.4%; Takeover Target Rating: Medium; www.danaher.com) is a leading maker of precision-testing equipment and tools....
Trisura is a good example of the third part of our three-prong approach to investing—downplay stocks in the media/broker limelight (the other two parts, of course, are invest in well-established companies; and spread your money across most if not all of the five main economic sectors).
On June 22, 2017, Brookfield Asset Management Inc....
On June 22, 2017, Brookfield Asset Management Inc....
VALVOLINE INC. $20 is a spinoff buy for aggressive investors. The company (New York symbol VVV; Manufacturing & Industry sector; Shares outstanding: 185.0 million; Market cap: $3.7 billion; Dividend yield: 2.4%; Takeover Target Rating: Medium; www.valvoline.com) is a leading maker of motor oil, lubricants and other automotive chemicals such as antifreeze....
Despite the negative impact of COVID-19, these two spinoff firms demonstrate our belief that spinoffs are the closest you can get to a sure thing in investing. Even after their impressive gains, we feel both Fortive and Yum China are in a strong position to move even higher.
FORTIVE CORP....
FORTIVE CORP....
US FOODS HOLDING CORP. $20 is a hold. The company (New York symbol USFD; Consumer sector; Shares outstanding: 220.3 million; Market cap: $4.4 billion; No dividend paid; Takeover Target Rating: Medium; www.usfoods.com) is one of the largest foodservice distributors in the U.S....