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Tyco to Split up Company into Three Parts; Shares Rise (TYC)

Diversified manufacturer Tyco International Ltd. ( TYC ) on Monday announced it would split its businesses up into three separate publicly-traded companies..

Current TYC shareholders will own 100% stake in the new companies:

  • ADT North America, which provides residential security products and services,
  • Tyco Flow Control, which makes valves and other controls, and
  • Its commercial fire and security business.

The break-up is expected to be completed within the next twelve months. Tyco also noted that the three separate companies will pay a total dividend that is approximately equal to the company's current payout.

Tyco shares rose $3.10, or +7.1%, in premarket trading Monday.

The Bottom Line

Shares of Tyco International ( TYC ) have a 3.11% dividend yield, based on Friday's closing stock price of $43.70. The stock has technical support in the $40-$42 price area. If the shares can firm up, we see overhead resistance around the $48-$50 price levels.

Tyco International Ltd. ( TYC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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