Current Analysis: Vector Group

Tobacco farmers collect tobacco leaves — Stock Photo, Image

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Vector Group Ltd (VGR) through its subsidiaries, manufactures and sells cigarettes and deals real estate in the United States. Its operating segments are (1) Tobacco, and (2) Real Estate.

The company produces cigarettes under the Eagle 20’s, Pyramid, Montego, Grand Prix, Liggett, Select, Eve, and USA brand names, as well as various partner snd private label brands. It markets and sells cigarettes to wholesalers and distributors of tobacco and convenience products, as well as grocery, drug, and convenience store chains.

The company also engages in Real Estate investment, operates apartment complexes, hotels and commercial real estate ventuures.

The company was formerly known as Brooke Group Ltd and changes its name to Vector Group  Ltd in May, 2000.

Vector Group Ltd was founded in 1873 and is headquartered in Miami, FL.

Three key data points gauge Vector Group or any dividend-paying firm.

 

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

 

VGR Price

Over the past year, Vector’s share price fell about 1.4% from $11.25 to $11.09 as of Friday’s market close.

If Vector Group Ltd shares trade in the range of $9.00 to $15.00 this next year, its recent $11.09 share price might rise to $13.50 by next year. Of course, Vector Group price could drop about the same $2.41 estimated amount, or more.

My annual upside estimate of $2.41 however, is about $2.00 under the median of one-year price targets from  analysts tracking VGR.

 

VGR Dividend

Vector Group Ltd has paid  Quarterly dividends since October 7, 1987. VGR’s most recent declared Quarterly dividend, of $0.20 was paid November 30th to shareholders on record as of November 15th.  A forward looking $0.80 annual dividend yields 7.21% at Friday’s $11.09 share price,

 

VGR Returns

To put it all together, add the  annual dividend of  $0.80 to the price upside of $2.41 to find a $3.21 gross gain.

At Friday’s $11.09 share price, a little under $1000 would buy 90 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.11 per share.

Subtracting that likely $0.11 brokerage cost from the $3.21 estimated gross gain per share produces a net gain of $3.10 X 90  shares = $279.00 for a 27.9% estimated net gain.

You might choose to pounce on Vector Group Ltd. VGR is a one hundred twenty-five year old Miami Tobacco and real Estate company. Furthermore, the estimated $72.10 in dividend income from $1k invested is over 6.5 times greater than Friday’s VGR single share price.

The exact track of Vector Group Ltd ongoing future prices and dividends are yet to be known.

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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