Fortress Cancels Third-Quarter Dividend

Sep 25 2008 | 12:22pm ET

Fortress Investment Group has some more bad news for its shareholders. The New York alternatives firm has scrapped plans to pay a third-quarter dividend, saying the turmoil on Wall Street could present opportunities to deploy that capital elsewhere.

“Retaining capital inside the firm increases our ability to act on these opportunities and is the right thing for us to do,” Fortress CEO Wesley Edens said in a statement. “To the extent that these opportunities become less attractive, we will review our dividend policy.”

Fortress paid a 22.5 cent dividend in the second quarter, though last month Edens warned that Fortress might cut the third-quarter dividend.

Fortress shares, which actually rose in the wake of the announcement, have been battered since the firm went public in February 2007. The stock has fallen more than 13% this year, and is down almost 30% since their initial public offering.

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