Icahn Enterprises L.P. to Issue Quarterly Dividend of $0.50 (NASDAQ:IEP)

Key Points

• Icahn Enterprises L.P. declared a quarterly dividend of $0.50 per share, which corresponds to an annualized yield of 22.0%, indicating a high return for investors.
• The company has a dividend payout ratio of 253.2%, suggesting it cannot fully cover its dividend payments with current earnings and is relying on its balance sheet.
• In its latest earnings report, Icahn Enterprises reported an EPS of ($0.30), missing analyst estimates, and showed a negative return on equity of 17.64%.

Icahn Enterprises L.P. (NASDAQ:IEP - Get Free Report) declared a quarterly dividend on Friday, August 1st, Wall Street Journal reports. Investors of record on Monday, August 18th will be given a dividend of 0.50 per share by the conglomerate on Wednesday, September 24th. This represents a c) dividend on an annualized basis and a yield of 21.6%. The ex-dividend date of this dividend is Monday, August 18th.

Icahn Enterprises has a payout ratio of 253.2% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Icahn Enterprises to earn $0.80 per share next year, which means the company may not be able to cover its $2.00 annual dividend with an expected future payout ratio of 250.0%.

Icahn Enterprises Stock Up 0.2%

IEP stock traded up $0.02 during trading on Friday, reaching $9.27. 635,536 shares of the stock were exchanged, compared to its average volume of 780,391. The firm's 50 day moving average is $8.78 and its 200 day moving average is $9.05. Icahn Enterprises has a twelve month low of $7.27 and a twelve month high of $17.12. The company has a current ratio of 3.40, a quick ratio of 3.04 and a debt-to-equity ratio of 1.96. The firm has a market cap of $5.32 billion, a P/E ratio of -7.54 and a beta of 0.78.

Icahn Enterprises (NASDAQ:IEP - Get Free Report) last issued its quarterly earnings data on Monday, August 4th. The conglomerate reported ($0.30) EPS for the quarter, missing the consensus estimate of $0.14 by ($0.44). The company had revenue of $2.14 billion during the quarter, compared to analysts' expectations of $2.39 billion. Icahn Enterprises had a negative return on equity of 15.65% and a negative net margin of 6.78%. As a group, research analysts forecast that Icahn Enterprises will post -0.55 EPS for the current year.

Analysts Set New Price Targets

Separately, Wall Street Zen raised Icahn Enterprises from a "sell" rating to a "hold" rating in a report on Saturday, May 17th.

Icahn Enterprises Company Profile

Icahn Enterprises L.P., through its subsidiaries, engages in the investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the United States and Internationally. The Investment segment invests its proprietary capital through various private investment funds. This segment provides investment advisory and other related services.