Yield Cuts are FUN

January 28, 2009

Fool.com

Regional amusement park operator Cedar Fair (NYSE: FUN) may be the next yield-slasher. Following in the footsteps of banking giants like Bank of America (NYSE: BAC) and Citigroup (NYSE: C) slashing their payouts.

"In light of the weak economy and uncertain credit environment, we are considering alternatives to reduce the Company's debt levels and better position the Company for future growth," CEO Dick Kinzel announced on Friday morning. "One such alternative includes reconsidering the Company's distribution policy based on its overall long-term capital structure objectives."

Units of Cedar Fair took a 10% hit on Friday after the announcement. Another 10% haircut followed Monday, as more investors faced the inevitable.

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