Honeywell declares spin-off dividend of Garrett stock
On September 5, Honeywell (HON) announced that its board declared a pro rata dividend of Garrett Motion common stock, effective on October 1. Garrett Motion common stock will start its regular trading on the NYSE on October 1 under the symbol “GTX.”
Honeywell has set September 18 as the record date. Investors who hold HON stock at the close of the record date will be eligible for this distribution. Honeywell shareholders will receive one common share of Garrett Motion for every ten shares of Honeywell.
Honeywell’s chair and CEO, Darius Adamczyk, said, “Today’s announcement marks another important step in Honeywell’s portfolio transformation, and demonstrates our continued commitment to generating shareowner value. The Garrett spin-off has decades of expertise in developing innovative, cutting-edge technologies for the automotive industry and will benefit from emerging global opportunities in e-boosting, integrated vehicle health management, and cyber security. With an experienced leadership team and growth-focused capital deployment strategy, Garrett is well equipped to deliver returns for its shareowners following its separation from Honeywell.”
Stock price reaction
On September 5, HON stock gained 1.35% and closed at $161.79. In comparison, peer General Electric (GE) was down by ~0.9%, while 3M (MMM) and United Technologies (UTX) were up by 1.55% and 0.67%, respectively, on a year-to-date basis. HON has outperformed these peers, but it has underperformed the broader market S&P 500 (SPY).