Honeywell Stock Is Likely to Reward Shareholders Following Quantinuum IPO, Split

Honeywell's (HON) shareholders can benefit significantly from both the IPO of its quantum computing unit and the separation of its aerospace and automation units. The quantum company, Quantinuum (QNT), began trading today, while the separation is slated to become effective on June 29. As of that date, the company will be divided into two firms: Honeywell Technologies and Honeywell Aerospace (HONA).

Honeywell holds a 49.1% stake in the quantum unit, whose long-term outlook is positive, in the wake of the IPO. And boding well for HON stock, the shareholders of a few major companies have benefited tremendously from spinoffs in the last few years. However, while the future of the company's automation unit looks very bright, investors should consider selling the aerospace business' shares immediately after the separation is completed.