It’s no secret—we’re fond of spinoff stocks! Indeed, we like them for several reasons. Most notably, they have a strong track record of outperforming competing firms following the split from their parent companies. Those former parent companies also tend to outperform their own rivals.

Of course, spinoffs have the potential to reward investors in other ways. Those new stocks—and indeed their former parents—often attract lucrative takeover offers within just a few years of a breakup.

The enhanced takeover appeal reflects the smaller, more-focused operations of both the spinoff and the parent. Their reduced market caps also make it easier for would-be buyers to fund their acquisition. In addition, the smaller operations are easier for buyers to integrate into their existing businesses. That often translates into a quick revenue and earnings boost.

GANNETT CO. INC. $4.33 (www.gannett.com) is a hold. The newspaper publisher continues to sell real estate and its less-important assets. In the first half of 2025, it sold real estate and other assets for $50.25 million. That helped it pay down its debt by $112.5 million to $919.6 million (as of June 30, 2025). That’s still a high 1.4 times its $634.9 million market cap. Gannett is a hold.

You can’t fake a record of dividends. That’s why we place a high value on a sustained history of dividend payments. When you’re looking for income-producing stocks, a high dividend yield should also be one of your most important investment considerations. But that shouldn’t come at the expense of sustainability.


Our exclusive TSI Dividend Sustainability Rating System uses eight factors to determine a company’s ability to maintain its current dividend, and increase the payment over time.



These factors are:

FINNING INTERNATIONAL INC. $65 is a buy. The company (Toronto symbol FTT; Cyclical-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 132.6 million; Market cap: $8.6 billion; Dividend yield: 1.9%; Dividend Sustainability Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment in Western Canada but also South America, the U.K. and Ireland.


With the June 2025 payment, Finning raised your quarterly dividend by 10.0%. Investors now receive $0.3025 a share instead of $0.275. The new annual rate of $1.21 yields 1.9%.

NUTRIEN LTD. $82 is a buy. The company (Toronto symbol NTR; Cyclical-Growth Payer Portfolio, Resources sector; Shares outstanding: 485.9 million; Market cap: $39.8 billion; Dividend yield: 3.7%; Dividend Sustainability Rating: Above Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers, including potash, nitrogen and phosphate. It ships about 28 million tonnes annually.


Nutrien also sells seeds, fertilizers and agricultural products to farmers through some 1,900 stores spread across the Western Hemisphere and Australia. That business accounts for about 75% of the company’s revenue, which helps offset its exposure to volatile bulk fertilizer prices.