This split has created two strong buys

Article Excerpt

Medical device maker Becton Dickinson has now completed the spinoff of its diabetes products business (embecta). The move lets Becton focus on a plan to increase its revenue by 5.5% a year. That new strategy should also lift earnings per share by 10% annually. As for embecta, its leading position in its niche markets—and its small market cap— makes it a highly attractive takeover target. BECTON DICKINSON & CO. $268 is your #1 Spinoff Buy for 2022. The company (New York symbol BDX; Manufacturing sector; Shares outstanding: 285.0 million; Market cap: $76.4 billion; Dividend yield: 1.3%; Takeover Target Rating: Medium; www.bd.com) operates through three segments: Medical makes an array of devices for hospitals, doctors’ offices and other clients in health care; Life Sciences sells products for collecting and shipping specimens as well as equipment for detecting diseases; and Interventional makes stents, catheters, needles, incontinence devices, and surgical tools. On April 1, 2022, Becton completed the spinoff of its Diabetes Care business (part of the Medical segment)…