Cedar Fair units tank after announcement to drop distribution

Posted Monday, November 16, 2009 11:23 PM | Contributed by Jeff

Shares of amusement park operator Cedar Fair, LP were punished by investors last week on the news of its third quarter earnings and the announced likely suspension of its dividend beginning next year. While the company saw its profits rise on lower revenue, its once-generous dividend distribution has been prized by income investors for many years, so the news of dropping the dividend caused many investors to flee the stock. Cedar Fair stock had been trading at $9.52, but fell to $6.99 on the announcement.

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