Icahn Enterprises halves dividend, sending shares lower

Investing.com -- Carl Icahn's investment group has halved its quarterly payout in a bid to protect cash in the wake of a report from short-seller Hindenburg Research that accused it of operating a "Ponzi-like" dividend structure.

In a statement, Icahn Enterprises (NASDAQ:IEP) said it would now distribute $1 per depositary unit to its investors for the second quarter, down from its typical payout of $2 per unit. Shares in the company shed more than a fourth of their value on Friday.

Hindenburg, which earlier this year criticized payouts and large debts Icahn had taken out against shares in IEP, said it was still short on the company. In a post on X, the social media platform formerly known as Twitter, Hindenburg also reiterated its position that IEP "will eventually cut or eliminate its dividend entirely, barring a miracle turnaround in investment performance."

Icahn himself refuted the allegations made by Hindenburg, describing them as "misleading and self-serving," and said he will not let the report interfere with IEP's dividend practices.

But the billionaire conceded that IEP's second-quarter results, which included a loss of $269 million, "partially reflected" the impact of short selling on companies it controls or invests in following the publication of Hindenburg's report.