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TEGNA INC. $21 is a hold. The company (New York symbol TGNA; Consumer sector; Shares outstanding: 160.9 million; Market cap: $3.4 billion; Dividend yield: 2.4%; Takeover Target Rating: Highest; www.tegna.com) owns 64 TV stations and two radio stations in 51 markets.
In June 2015, Gannett Co. Inc. (New York symbol GCI) spun off its newspaper operation as a separate company operating under the Gannett name. The remaining broadcasting and Internet unit was then renamed Tegna. Under the deal, for every two shares investors held, they received one share of the spinoff company and two shares in Tegna.
In June 2015, Gannett Co. Inc. (New York symbol GCI) spun off its newspaper operation as a separate company operating under the Gannett name. The remaining broadcasting and Internet unit was then renamed Tegna. Under the deal, for every two shares investors held, they received one share of the spinoff company and two shares in Tegna.
Spinoffs tend to unlock value, as investors prefer “pure-play” firms that they can easily evaluate. While we still like the long-term outlooks for Maple Leaf Foods (which is planning a spinoff) and Dow (a spinoff), we don’t see them as attractive for new buying right now.
GFL ENVIRONMENTAL INC. $70 is a hold. The company (Toronto symbol GFL; Manufacturing sector; Shares outstanding: 378.3 million; Market cap: $26.5 billion; Dividend yield: 0.1%; Takeover Target Rating: Medium; www.gflenv.com) is North America’s fourth-largest waste-management firm.
Earlier this year, under pressure from activist investors, GFL sold 56% of its Environmental Solutions division for $5.93 billion. That business collects and treats hazardous liquids and offers soil re-mediation services.
Earlier this year, under pressure from activist investors, GFL sold 56% of its Environmental Solutions division for $5.93 billion. That business collects and treats hazardous liquids and offers soil re-mediation services.
Some activist investors buy into a company because they want to work with management to boost value. Others take a hostile approach, demanding asset sales and other actions. Here are examples of both approaches. That being said, we still see better opportunities for your new buying.
In October 2018, industrial conglomerate Honeywell International Inc. (New York symbol HON) spun off its home products business as Resideo Technologies. Honeywell shareholders received one share of Resideo for every six of their Honeywell shares.
Resideo’s shares have moved mostly sideways since the split. That’s partly because the company assumed responsibility for some of Honeywell’s environmental obligations. However, a new deal with Honeywell has eliminated all future monetary obligations.
The company also plans to spin off its ADI Global Distribution division. ADI supplies over 500,000 electronic items, such as security systems, fire alarms and access control devices, to commercial customers.
These two developments help cut Resideo’s risk and should push the stock higher over the next few years.
Resideo’s shares have moved mostly sideways since the split. That’s partly because the company assumed responsibility for some of Honeywell’s environmental obligations. However, a new deal with Honeywell has eliminated all future monetary obligations.
The company also plans to spin off its ADI Global Distribution division. ADI supplies over 500,000 electronic items, such as security systems, fire alarms and access control devices, to commercial customers.
These two developments help cut Resideo’s risk and should push the stock higher over the next few years.
MEDTRONIC PLC $93 is a spinoff buy. The company (New York symbol MDT; Manufacturing sector; Shares outstanding: 1.3 billion; Market cap: $120.9 billion; Dividend yield: 3.1%; Takeover Target Rating: Medium; www.medtronic.com) develops, makes and distributes a wide range of healthcare-related devices and equipment.
Medtronic recently announced that it would separate its diabetes business into a standalone company within 18 months. The company intends first to conduct an IPO of less than 20% for the diabetes unit and then hand out the remaining 80% to its shareholders.
Medtronic recently announced that it would separate its diabetes business into a standalone company within 18 months. The company intends first to conduct an IPO of less than 20% for the diabetes unit and then hand out the remaining 80% to its shareholders.
On May 22, 2019, apparel maker VF Corp. spun off its Lee and Wrangler jeans business as the publicly traded Kontoor Brands. Investors received one share in Kontoor for every seven VF shares they held.
The split has not worked out well for VF—its shares are down about 80%. However, the company is aggressively cutting its costs, which will help offset the impact of new tariffs on imports from Vietnam and China.
Kontoor, on the other hand, is up over 90%. While also exposed to tariffs, the company stands to gain from its recent acquisition of the Helly Hansen sportswear brand.
The split has not worked out well for VF—its shares are down about 80%. However, the company is aggressively cutting its costs, which will help offset the impact of new tariffs on imports from Vietnam and China.
Kontoor, on the other hand, is up over 90%. While also exposed to tariffs, the company stands to gain from its recent acquisition of the Helly Hansen sportswear brand.
A: Celestica Inc, $254.77, symbol CLS on Toronto (Shares outstanding: 115.0 million; Market cap: $31.0 billion; www.celestica.com), provides supply chain systems globally.
The company started out as a business unit of IBM, providing electronics manufacturing services, or EMS. In 1996, an investor group led by Onex Corp. bought the business unit. In 1998, Celestica then completed its initial public offering with listings on the Toronto and New York Stock Exchanges. Onex sold its remaining interest in the company in 2023.
The company started out as a business unit of IBM, providing electronics manufacturing services, or EMS. In 1996, an investor group led by Onex Corp. bought the business unit. In 1998, Celestica then completed its initial public offering with listings on the Toronto and New York Stock Exchanges. Onex sold its remaining interest in the company in 2023.
A: The decision about how to invest your dividends is a personal one.
For example, an investor who needs current income to live on would take their dividends in cash, and so on.
Overall, we think that DRIPs are OK to participate in. But here are a few things to keep in mind:
For example, an investor who needs current income to live on would take their dividends in cash, and so on.
Overall, we think that DRIPs are OK to participate in. But here are a few things to keep in mind:
A: Gap Inc., $20.55, symbol GAP on New York (Shares outstanding: 373.1 million; Market cap: $7.8 billion; www.gapinc.com), sells clothes, accessories, and personal care products for women, men, and children. Its stores operate under the Old Navy, Gap, Banana Republic, and Athleta brands.
Gap currently has 2,496 company-operated stores and about 1,004 franchise store locations. Company-operated stores are in the U.S., Canada, Japan and Taiwan. Gap also has franchise agreements to operate stores in Asia, Europe, Latin America, the Middle East, and Africa.
Gap currently has 2,496 company-operated stores and about 1,004 franchise store locations. Company-operated stores are in the U.S., Canada, Japan and Taiwan. Gap also has franchise agreements to operate stores in Asia, Europe, Latin America, the Middle East, and Africa.