It’s not just movies and TV shows that are getting the spin-off treatment these days. Wall Street and the corporate world have gotten spin-off fever. The number of firms looking to carve out portions of their businesses as separate companies has surged in recent quarters and many more are being planned. In fact, spin-offs are starting to outnumber IPOs.
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The question is whether or not these spin-offs actually create value.
For dividend investors, the answer isn’t so black or white. Spin-offs have had a mixed history when it comes to dividends and income stability. All in all, spin-off fever may not be that great a thing.