FUN: A High Dividend Stock Discussed by Seeking Alpha

...FUN is trading at just 7.3x forward earnings. It has an outstanding 1-year return on equity (ROE) of 24.57%.

Cedar Fair is a Zacks #2 Rank (buy) stock. Analysts expect 58.91% year-over-year earnings growth in 2009.

How safe is the dividend?

Cedar Fair announced in March 2009 that it was reducing its distribution from 48 cents to 25 cents in order to reduce debt and strengthen the balance sheet. By lowering the distribution, the partnership believes that it can reduce its debt by $200 million over the next 3 years.

The partnership is looking to sell some assets including 3 of its amusement parks as well as excess land in the Toronto and Cleveland markets.

Despite the recent distribution cut, Cedar Fair is looking to pay a total of $1.00 per unit for 2009, which is still a hefty dividend yielding over 8.00%.

All Distributions Come With Risk

No dividend is completely "safe"- even from those companies, as we have seen, with nearly a 100-year track record of rewarding shareholders. Investors need to read the fine print.

http://seekingalpha.com/article/138632-3-h...cks-to-consider