High-Yield Dividend Stocks: Icahn Enterprises (IEP)
Sector: Financial services
Dividend Yield: 5.7% (based on last four payouts)
Market Cap: $11.7 billion
It’s probably no surprise that the biggest shareholder in Icahn Enterprises (IEP) is Carl Icahn, the famous activist investor who has grabbed a lot of headlines lately.
But unfortunately, the mojo of Mr. Icahn seems to have lost steam in recent weeks. His very public support of Herbalife (HLF) has soured now that there’s a federal investigation, his urging of Apple (AAPL) to institute a big stock buyback didn’t lead to anything, and Icahn most recently gave up on eBay (EBAY) and his push to spin off the PayPal mobile payments division.
Still, while IEP stock is down 21% or so since Jan. 1, don’t count this stock out. Carl Icahn has a long history of running a successful financial firm — and most importantly, delivering a hefty portion of his profits back to shareholders.
If you believe that the stock market will get choppy, it may help to have a shrewd money manager on your side like Mr. Icahn. And dividend stocks aren’t a bad idea, either. If you want income but don’t want to settle for the meager yield of Treasuries, you could do much worse than the hefty 5.7% yield in IEP stock right now.
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Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at email@example.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not hold a position in any of the aforementioned securities.