Depositary unit holders will have the choice of having the distribution paid in either cash or additional depositary units.
The company's prior annual dividend was $1.40, comprised of 40 cents in cash and the rest in depositary units.
Icahn Enterprises will distribute the dividend on a quarterly basis, with a $1 dividend payable on April 15 to depositary unit holders of record on Feb. 21.
Shares of Icahn Enterprises L.P., a diversified holding company, jumped $3.52, or 5.9 percent, to $63.47 in Monday morning trading. The stock has traded between $37.22 and $65.17 over the past year.