Washington, D.C.
It’s one of my favorite income payers in the Cash Machine portfolio – and it comes every single month.
In fact, Icahn Enterprises LP (IEP) is one of the sweetest income investment opportunities I have seen in a long time.
Here’s what I had to say to Cash Machine subscribers about the stock when I first recommended it:
The current rotation of fund flows into what some term as “the real economy” sectors is fierce, and once the dust settles from the current correction, it is those stocks of companies leveraged to the reopening of the domestic and global economies that are beneficially sensitive to inflationary pressures and will lead going forward.
To this point, I want to buy back a prior stock holding that fits this profile of the market rotation into deep value and cyclical companies to a tee: Icahn Enterprises L.P. (IEP).
For now, I am advising to buy a new pick that we have owned previously. IEP, through its subsidiaries, operates in investment activism, energy, automotive, food packaging, metals, real estate, home fashion and pharmaceutical businesses in the United States and internationally.
It’s founder and Chairman, Carl Icahn, is a Wall Street legend, known for making big and bold bets on deeply distressed companies, cleaning them of their burdens and then putting them up for sale or exiting his large stock positions.
It is a formula that has turned Icahn into a billionaire with a current net worth of more than $16 billion. At present, the company wholly owns outright or is the majority shareholder in energy refining company CVR
Energy Inc. (CVI), auto parts dealer Pep Boys, home furnishings manufacturer WestPoint Home, global food packaging provider Viskase and scrap metal operator PSC Metals, among other closely held businesses.
What is entirely unique about Icahn Enterprises is that Carl Icahn and insiders control 92.3% of the stock, of which there are 232 million shares.
Thus, the public float is only 19.33 million shares. To say Mr. Icahn and his officers do not have the shareholders in their best interest is a significant misstatement. In addition, Carl Icahn never met a boardroom brawl that he didn’t like.
In case you are not familiar with activist investor Carl Icahn, he earlier developed a reputation as a “corporate raider” after his hostile takeover of TWA in 1985. Michael Douglas profiled Icahn for his role as Gordon Gekko in the movie “Wall Street.” The company has a luscious all-weather distribution policy.
Let’s just say they like to pay themselves and their shareholders very well.
The current annual distribution is set at $8.00 per share, or $2.00 paid per quarter.
The company just declared the latest $2 dividend that trades ex-dividend March 25 and is payable April 28.
The current annual yield of 15.83% proves that in spades.
Although IEP experienced a dip in share price with the recent overall market correction, there may still be more upside ahead for this stock.
It has recovered what it had lost due to the pandemic, and I believe it will continue upwards.
Here’s a quick look at the chart...
*Source: StockCharts.com
Recommendation: Purchase shares of Icahn Enterprises LP (IEP) at market price.
Consult the most recent issue of Cash Machine, or your most recent email Alert update, for the recommended sell price and the latest advice on this recommendation.
One final note: If you could use an 11.80% dividend payout in your portfolio, CLICK HERE to learn how you can collect the next one — PLUS all the upside.
Biography
About Bryan Perry
For over a decade, Bryan Perry has brought his expertise on high-yielding investments to his Cash Machine subscribers. Before launching the Cash Machine advisory service, Bryan spent more than 20 years working as a financial adviser for major Wall Street firms, including Bear Stearns, Paine Webber and Lehman Brothers.
Bryan co-hosted weekly financial news shows on the Bloomberg affiliate radio network from 1997 to 1999, and he’s frequently quoted by Forbes, Business Week and CBS’ MarketWatch. He often participates as a guest speaker on numerous investment forums and at investment conferences around the nation. With over three decades of experience inside Wall Street, Bryan has proved himself to be an asset to subscribers looking to collect juicy dividend payouts each month, quarter or year.
Bryan’s experience has given him a unique approach to high-yield investing. He combines his insights into dividend-paying investments with in-depth fundamental research in order to pick stocks with high dividend yields and potential capital appreciation.
In addition to Cash Machine, Bryan provides a supplemental trading service called Premium Income, which gives subscribers a unique way to generate additional income on the Cash Machine stocks using covered call options. He also offers several other trading services designed to maximize income generation while playing a variety of market trends: Quick Income Trader, Breakout Profits Alert, and Hi-Tech Trader.
