I have been holding some shares of WestRock for several months now but recently WestRock decided to spin off their specialty chemical business. Which from a business point of view I think makes perfect since because it is not in the core business of what WestRock does. The way it was spun off, for every 6 shares of WestRock that you owned you would receive 1 share of Ingevity Corporation. I only hold 14 shares of WestRock so I received 2 shares of Ingevity and then received a small amount of money to account for the fractional shares that I would have received.
Now from what I gather Ingevity stands to increase their earnings as oil prices continue to recover which is great for the company. I’m just unsure if I want to continue to hold the shares considering the fact that thus far I have found no statement of the company paying a dividend. Dividend growth investing is my whole strategy so it is kind of pointless to hold shares in a company that doesn’t pay dividends. At roughly $34 a share, would it really be worth selling the two shares considering the fact that I would have to pay the $4.95 trade commission fee.
The WestRock stock has totally rebounded to where it was at before the spin off happened. So really the Ingevity stock is just kind of a bonus that was given to me for being a shareholder of the WestRock stock. I have found myself in quite a conundrum but I think that for now I am going to just hold onto the shares and see what they do. I would be very interested to hear about other peoples experience when it comes to stock they acquire through spin offs.