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What to do when you receive shares in a Stock spin-off. Larger companies sometimes distribute shares of smaller holdings, so it's important to know what to do when you receive shares in a stock spin-off. August 28, 2026 - If you own a portfolio of large-cap stocks, it's not a matter of if but when you will receive shares of a stock spin-off. Just take United Technologies, which spun off two separate companies, Otis Worldwide (OTIS) and Carrier Global Corporation (CARR). Further, the remaining aerospace company was merged with Raytheon to create an aerospace and defense juggernaut. To further confuse the issue, it kept the Raytheon (RTN) name. Or, consider General Electric, which split up in 2024, spinning out GE Vernova (GEV) and GE HealthCare (GEHC), while GE Aerospace kept the GE ticker. When you receive shares in a spin-off, it's difficult to find information related to the new company or companies that you now own. But before Cabot Wealth cover what to do when you receive a spin-off, let's take a step back. What is a Stock spin-off? A stock spin-off occurs when a publicly traded company separates part of its business into a second public company and distributes its shares in the new business on a pro-rata basis to existing investors. Spin-offs occur because management thinks their business is undervalued by the market and believes that splitting the business up into a simpler structure will force investors to re-value the spin-off and parent more in line with comparable companies. How do spin-offs perform? In short, they perform well and many famous investors advocate for investing in spin-offs. Peter Lynch, who famously generated 29.2% annual returns while managing Fidelity's Magellan Fund, wrote in One Up on Wall Street, "Spin-offs often result in astoundingly lucrative investments." Joel Greenblatt, a lesser-known but equally impressive investor who generated 50% annual returns while managing Gotham Capital, was also a proponent of spin-off investing. He wrote in You Can Be a Stock Market Genius, "You can make a pile of money investing in spin-offs. The facts are overwhelming. Stocks of spin-off companies significantly and consistently outperform the market averages." While spin-offs won't outperform every year, numerous studies show that over the long term, stock spin-offs do quite well. For example, Credit Suisse found that U.S. stock spin-offs outperformed the market by 13.4% in the first 12 months of trading. What to do when you receive a spin-off. Given the long-term performance of spin-offs, it's usually a prudent decision to hang on to the shares of any spin-off that you receive. Nonetheless, there are two questions to consider when deciding what to do when you receive shares in a stock spin-off. * Is the spin-off paying exorbitantly high interest on its debt? * Is the spin-off's business in secular decline? If the new spin-off has debt and its cost of interest is at 10% or higher, bondholders have expressed serious concerns about the staying power of the business. This is a serious red flag. Take Quorum Health, a 2016 spin-off from Community Health Systems (CYH). Bondholders priced Quorum's debt at 11.6%, an incredibly high interest rate, especially considering how low rates were around the world. Investors would have been smart to sell their spin-off shares of Quorum Health as the company performed poorly and subsequently declared bankruptcy. The second question relates to the outlook for the business. If the spin-off's business is in secular decline, it's usually a good decision to sell the stock, even at a cheap valuation. Take CBS Radio, which was spun off and merged with Entercom Communications in November 2017. The radio business generated good cash flow but was in secular decline. Investors would have been wise to sell shares after the CBS Radio spin-off as the company went on to rebrand under the Audacy name only to subsequently go bankrupt and delist the common stock. Of course, usually it pays to hold onto your spin-offs or buy more. Consider Zoetis (ZTS), a 2013 spin-off from Pfizer (PFE), up 147% since. Or Bioverativ, a 2017 spin-off from Biogen (BIIB), which was acquired by Sanofi (SNY) a year after its spin-off for 138% higher than its spin-off price. Those are the kinds of returns that make investing in stock spin-offs worth the risk.

Otis earns place on Newsweek's World's Greenest Companies 2026 list. By Otis - August 25, 2026 - 2 min Otis (NYSE: OTIS), the world's leading elevator and escalator manufacturing, installation, service and modernization company, has been named to Newsweek's World's Greenest Companies 2026 list for the second consecutive year. Otis earned 5 stars, the highest rating awarded. The ranking recognizes 850 companies across 28 countries based on an evaluation of companies' self-disclosed environmental performance, including greenhouse gas emissions, water usage, waste generation, sustainability data disclosure and commitments. More than 8,000 companies were considered in the initial analysis. At Otis, sustainability-related strategies are integrated into how Megaproject run its business - supporting its vision and reinforcing its customer-centric, service-oriented mission, said Kevin Dix, Senior Vice President, Global Environment, Health & Safety, Otis. This recognition underscores Otis' continued focus on improved efficiency and business resilience across its operations. To learn more about Otis' sustainability-related projects and programs, read its latest Connect & Thrive report. About Otis Otis gives people freedom to connect and thrive in a taller, faster, smarter world. The global leader in the manufacture, installation, service and modernization of elevators and escalators, Megaproject move 2.5 billion people a day and maintain approximately 2.5 million customer units worldwide - the industry's largest Service portfolio. You'll find Megaproject in the world's most iconic structures, as well as residential and commercial buildings, transportation hubs and everywhere people are on the move. Headquartered in Connecticut, USA, Otis is 72,000 people strong, including 45,000 field professionals, all committed to manufacturing, installing and maintaining products to meet the diverse needs of its customers and passengers in more than 200 countries and territories. To learn more, visit www.otis.com and follow Megaproject on LinkedIn, YouTube, Instagram and Facebook @OtisElevatorCo. Newsweek is a registered trademark of Newsweek LLC. Recent Comments

Ava Risk Group appoints Bryant Henson as CEO. Ava Risk Group has appointed former Otis Worldwide Corporation, L3Harris Technologies and Lockheed Martin executive Bryant Henson as chief executive officer, effective August 24, 2026. The company said the appointment supports its North American growth strategy and comes amid rising investment in the protection of mission-critical infrastructure, driven by geopolitical tensions, ageing infrastructure, digital transformation, and the growing convergence of physical and cyber security. Ava describes itself as a global technology company that develops intelligent sensing and physical security platforms to help organisations detect, understand and respond to threats across mission-critical infrastructure, combining sensing technologies, AI-powered analytics and integrated software. The company said its technologies are used by government agencies, defence organisations and commercial operators in more than 70 countries. Henson most recently served as executive vice president and global head of strategy and business development at Otis Worldwide Corporation. Before that, he held roles at L3Harris Technologies, including president of the Tactical Communications Sector and the Mission Avionics Sector. Earlier in his career, he spent sixteen years at Lockheed Martin in senior operational, business development and executive leadership roles. David Cronin, Chairman of Ava, commented: "The protection of mission-critical infrastructure has become one of the defining security challenges of our time. Governments and infrastructure operators are under increasing pressure to protect essential assets against more sophisticated threats while maintaining operational continuity, resilience and efficiency. For decades, the physical security industry has focused on detecting events. We believe the next generation of intelligent security will be defined by understanding those events, providing customers with meaningful operational intelligence that enables faster decisions, improves resilience and helps safeguard essential services." "Bryant brings exactly the leadership experience we were looking for. He has built and led world-class technology businesses, developed long-term strategic partnerships and successfully executed growth strategies across global defense, aerospace and critical infrastructure markets. Just as importantly, he understands that innovation only creates value when it delivers measurable outcomes for customers." Bryant Henson, newly appointed Chief Executive Officer of Ava, commented: "Throughout my career, I've been privileged to work with organizations that solve complex challenges for customers operating in some of the world's most demanding environments. What attracted me to Ava Risk Group was the opportunity to build on an outstanding technology foundation and help scale a business with tremendous global potential. The market is entering an exciting period of transformation. Customers increasingly require more than sensors or security devices, they need intelligent platforms that deliver actionable information, improve operational awareness and support better decisions across increasingly complex environments." "Ava has earned an outstanding reputation for innovation, technical excellence and customer success. The Company's technologies address some of the world's most important physical security challenges, and I believe there is a significant opportunity to expand that leadership by continuing to invest in innovation, strengthening strategic partnerships and remaining relentlessly focused on customer outcomes." "My priorities are straightforward: listen to our customers, support our people, invest in innovation and execute with discipline. By bringing together intelligent sensing, AI-powered analytics and integrated physical security platforms, we have an opportunity to help customers generate better operational intelligence, strengthen resilience and make faster, more informed decisions. I believe Ava is exceptionally well positioned for its next phase of growth, and I look forward to working alongside our employees, customers and partners to realize that opportunity." Ava said organisations across government, defence and commercial markets are seeking technologies that provide earlier detection, greater operational visibility and faster decision-making.