Cedar Fair units tank after announcement to drop distribution

I used the term ripped off because many investors wouldn't have bought the stock had it not paid out the awesome dividends. Guaranteed or not, their stocks are somewhat worthless until it either raises in price so they can sell it, or it starts paying income once again. The people who bought it expecting it to help supplement their income are out of luck.

Why would anyone buy stock from a company unless they think that they would profit from it?

There's risk involved with any stock. You have to go in expecting that.

Investors are looking to make a profit when they make any investment. You can profit with an equity investment if the company pays dividends or if the equity investment increases in value. Because CF isn't making distributions, the profit will come (if it comes at all) from increased value of the units. By using the money that would otherwise go to make distributions to pay down debt, presumably CF's income will increase (because its interest costs will be reduced). And at this point, commercial financing is more expensive (in terms of interest rates/fees) than it has been in recent years and its still difficult to get. In addition, lenders are looking for lower debt levels than they have in recent history. And because folks in DC are spending/printing money like drunken sailors, interest rates will increase at some point in the (near) future. All of that places reduced debt levels at a premium which I why CF has eliminated its distribution.

With reduced debt levels, an improved economy (at some point down the road any way because if there isn't one, what happens with CF units is the least of our problems) and a better diversified park structure in terms of regions of the country, I can see how an investor would view CF as a potentially good investment. Though as noted, none of that is a guaranty. There are risks with pretty much any investment. If you don't want to take those risks (and the consequences if those risks do not pan out the way you hoped) make a different investment.