Shares of Icahn Enterprises surged by 14% following the company’s announcement that it would be maintaining its quarterly dividend. In the third quarter, IEP plans to pay a dividend of $1 per share, resulting in a yield of approximately 20%. Despite reporting a loss of $6 million, IEP exceeded expectations with third-quarter revenue of $3 billion.
IEP has experienced a challenging year, with its shares declining by 67% since the start of the year due to a short-seller attack in May. The company, which represents the investments of billionaire Carl Icahn, reached a 19-year low earlier this week. However, the recent decision to uphold the quarterly dividend has had a positive impact on investor confidence, leading to the significant increase in share price.
This news is significant for IEP as it showcases the company’s commitment to maintaining shareholder value. By maintaining the quarterly dividend, IEP hopes to instill confidence in its investors during a period of otherwise dismal performance. The announcement of higher-than-expected third-quarter revenue further supports the company’s efforts to recover from the impact of the short-seller attack. However, it remains to be seen whether these positive developments will lead to a sustained turnaround for IEP’s shares.
