Resideo Stock: Honeywell Announced the Spin-Off Dividend



Honeywell announced the spin-off dividend

On October 2, Honeywell (HON) announced that its board declared Resideo Technologies’ pro-rata dividend, which is effective on October 29.  Resideo Technologies will be listed on the NYSE. Regular trading will start on October 29. The company will trade under the symbol “REZI.”

Honeywell has set October 16 as the record date. Investors who hold Honeywell stock at the close of the record date will be eligible for the distribution. Honeywell shareholders will receive one common share of Resideo Technologies with a par value of $1.00 for every six shares of Honeywell.

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Honeywell’s chairman and CEO, Darius Adamczyk, said, “Today’s announcement marks the final phase of the portfolio transformation we announced in October of last year. The Garrett spin was completed on October 1, and Resideo is expected to be an independent, publicly traded company by the end of this month, which is earlier than anticipated. Once this final phase is complete, Honeywell will be more focused, with businesses that offer multiple platforms for growth and margin expansion, an even stronger balance sheet for aggressively deploying capital, and a continued focus on delivering outstanding returns for our shareowners.”

On October 1, Honeywell completed the spin-off of Garrett Motion (GTX). Garrett Motion stock opened at $17.6 and closed at $18.39 on October 1. Honeywell has continued its upward trend. On a year-to-date basis, Honeywell has gained ~9.5%. After the spin-off is complete, Honeywell thinks that it will be more focused with a stronger balance sheet, which could add value to its shareholders.

Investors could hold Honeywell indirectly by investing in the Industrial Select Sector SPDR Fund (XLI). XLI has invested 5.0% of its portfolio in Honeywell. The fund also provides exposure to Boeing (BA), 3M (MMM), and United Technologies (UTX) with weights of 8.3%, 5.1%, and 4.3%, respectively, as of October 2.


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