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AltaGas has strong appeal for growth-focused investors: the company’s regulated utilities provide steady cash flow that supports the expansion of its midstream operations and the build-out of its liquefied petroleum gas facilities. Indeed, the future for this leader is increasingly bright as it continues its push into lucrative global markets....

3 min read

Pat McKeough

Spinoffs

Here’s our Spinoff Stock Portfolio for May 2025

You Can See Our Spinoff Stock Portfolio For May 2025 Here.

Why we like spinoffs so much
We think that spinoffs are the closest thing you can find to a sure thing for two main reasons:

1) The management of a parent company will only hand out shares in a subsidiary to its own investors if it’s all but certain that business, and the parent, will be better off after the spinoff.

2) Spinoffs involve a lot of work and legal fees....

1 min read

Pat McKeough

Spinoffs

This IPO jumped 126.1% in 1 day

FATPIPE INC. $7.42 is a hold. The company (Nasdaq symbol FATN; Manufacturing sector; Shares outstanding: 13.7 million; Market cap: $101.7 million; No dividends paid; Takeover Target Rating: Lowest; www.fatpipeinc.com) makes software that monitors and protects data traffic in local and cloud-based computer networks....

1 min read

Pat McKeough

Spinoffs

Keep our stock updates top of mind

AMENTUM HOLDINGS INC. $19 is a hold. The company (New York symbol AMTM; Manufacturing sector; Shares outstanding: 243.3 million; Market cap: $4.6 billion; No dividend paid; Takeover Target Rating: Medium; www.amentum.com) provides advanced engineering and technology solutions to the U.S....

2 min read

Pat McKeough

Spinoffs

Five years of stellar gains

On April 3, 2020, aerospace and military equipment maker RTX Corp. (formerly called Raytheon Technologies, New York symbol RTX) spun off its Otis (elevators) and Carrier (heating and air conditioning equipment) businesses. For each UTX share they held, investors received 0.5 of a share in Otis and 1 share in Carrier.

Five years later, Carrier is up over 370%, while Otis has gained about 120%....

2 min read

Pat McKeough

Spinoffs

Plan could double the stock price

PHILLIPS 66 $96 is a buy. The company (New York symbol PSX; Manufacturing Sector; Shares outstanding: 407.7 million; Market cap: $39.1 billion; Dividend yield: 4.7%; Takeover Target Rating: Medium; www.phillips66.com) refines and transports oil and gas, operates gas stations, and owns 50% of a chemical firm (Chevron Corp....

1 min read

Pat McKeough

Spinoffs

These two targets don’t inspire us

We keep an eye on activist investors as they tend to target struggling firms, such as Kenvue and El Pollo, that could boost shareholder value with asset sales and spinoffs. However, these two stocks offer limited appeal right now.

KENVUE INC....

2 min read

Pat McKeough

Spinoffs

Spinoff should spur a rebound

FEDEX CORP. $207 is a buy. The courier company (New York symbol FDX, Consumer sector; Shares outstanding: 240.9 million; Market cap: $49.9 billion; Dividend yield: 2.7%; Takeover Target Rating: Medium; www.fedex.com) is down 25% since the start of 2025, partly due to fears that U.S....

1 min read

Pat McKeough

Spinoffs

Strong brands will help them thrive

On August 3, 2021, the old L Brands holding company (old New York symbol LB) split into two separate firms: Victoria’s Secret and Bath & Body Works. Investors received one new share of Victoria’s Secret for every three shares of L Brands they held. L Brands then changed its name to Bath & Body Works.

Both firms get some of their products from China and other countries, so U.S....

2 min read

Pat McKeough

Spinoffs

Tariffs could offset merger benefits

On July 5, 2024, cardboard maker Westrock merged with Dublin, Ireland-headquartered Smurfit Kappa. Westrock investors received one share of the new Smurfit Westrock and $5 in cash for each share they held.

Demand for its packaging products is cyclical, and a slowing global economy is largely why the stock is down 17% since the merger....

2 min read

Pat McKeough

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Investors Association of Canada
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Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.