Stockchase Insights Icahn Enterprises LP IEP-Q DON'T BUY Jun 02, 2023

IEP’s dividend yield always looks attractive, given the recent drop in share price, the current yield reaches approximately 35%. The recent short report in IEP claims that the dividend payment is unsustainable and is funded by share issuance, that IEP’s investment and operating performance is not so great, and IEP’s share price traded at a premium Net asset value (NAV), while most peers trade at a discount. The dividend may not be sustainable at the current rate, and the share price could experience further downward pressure, if there is a dividend cut.  As a limited partnership, the dividends received will be subject to a withholding tax of up to 37%. There is also a 10% tax on the proceeds of the disposition of an LP. We do see the shares as binary, and right now we would be reluctant to own them. 
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