| Last week, we did a poll to see which stock Wealthy Retirement readers wanted me to review for dividend safety. The overwhelming winner was Icahn Enterprises (NYSE: IEP). That's probably not too surprising given its 21% yield and the fact that it's controlled by legendary chairman Carl Icahn. Icahn Enterprises is a holding company that owns a variety of businesses in the energy, real estate, and pharmaceuticals industries, among several others. The company currently pays a $0.50 per share quarterly dividend. With the stock a little above $9, that comes out to a gigantic 21% yield. How likely is the company to maintain such a high yield? Icahn Enterprises generated $156 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) in 2024. EBITDA is a surrogate for cash flow. I typically look at other metrics, such as free cash flow, funds from operations, distributable cash flow, etc., depending on the company - but Icahn Enterprises reports its results using EBITDA, so that's what we'll go off of. |
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