Photo by Austin Distel on Unsplash
 

Vector Group Ltd (VGR) is a holding company whose subsidiaries--Liggett Group, Vector Tobacco, and New Valley-- primarily sell tobacco products and invest in real estate.

The Liggett Group and Vector Tobacco subsidiaries sell cigarettes, primarily in the discount segment, in the United States under brand names Eagle 20's, Pyramid, Grand Prix, Liggett Select, and Eve.

New Valley, through its majority ownership in Douglas Elliman Realty, invests in real estate worldwide. It also operates the largest residential brokerage company in the New York City area and has additional operations in South Florida, Beverly Hills, Aspen, and Connecticut.

Tobacco accounts for more than half of total company revenue; real estate makes up the remainder.

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

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

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

They 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 Group's price per share increased about 27% from $10.16 to $12.91 as of Thursday’s market close.

If VGR’s stock trades in the range of $8.00 to $18.00 this next year, its recent $12.91 share price might get up to $15.50 by next year. Of course, VGR price could drop about the same $2.59 amount or more.

My upside estimate of $2.59 is in line with the median of one-year price targets set by two analysts tracking Vector stock for brokers.
 

VGR Dividend

Vector Group Ltd's recent $0.20 quarterly dividend multiplies out to $0.80 annually to yield 6.19% at Thursday’s closing price.
 

VGR Returns

Adding the $0.80 projected annual dividend to my estimated $2.59 price upside reveals a $3.39 potential gross gain per share for the coming year.

At Thursday’s $12.91 closing price, a little under $1000 would buy 77 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us about $0.13 per share.

Subtracting that maybe $0.13 brokerage cost from my estimated $3.39 gross gain per share makes a net gain amounting to $3.26 X 77 shares = $251.02 or a 25.1% net gain.

In the next year, our $1K investment in shares of VGR could generate about $61.90 in dividends. Furthermore, a single share of VGR stock at Thursday’s $12.92 closing price is nearly one-fifth of the income generated from $1000.00 invested.

So, by my dogcatcher ideal, this could be the time to buy Vector Group Ltd based on its estimated dividends for 2023. The dividend from $1k invested is 4.79 times greater than the VGR single-share price. Consider yourself alerted.

This may be the time to pounce on Vector Group Ltd. But beware, its dividend is secure but the price is volatile, and priced about $8 under the stock’s all-time $20.19 high posted on December 4, 2015.

The foregoing article is based on past history of Vector Group Ltd. The only accurate measure of future performance is from active investment in the company.

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