Vector Group (
) makes and sells cigarettes, but it's also increasing its
interest in the real estate business.
Last December, it paid $60 million in cash to up its ownership
of Douglas Elliman Realty, which it says is New York's largest
real estate brokerage, from 50% to 70.59%.
In a presentation in March, company executives told
institutional investors 2013 was a transformational year for the
Besides upping its stake in Elliman, the company has settled
with 4,900 plaintiffs in a class-action smoking lawsuit and has
invested $75 million in real estate holdings.
It also introduced a new brand, Eagle 20s, which targets the
deep discount market.
The company has a history in tobacco that goes back to 1873
with the founding of the Liggett brand. It owns the Liggett, Eve,
Pyramid, USA and other brands. In 2013, 63% of its revenue came
from tobacco, the rest from real estate.
It owns the Elliman real estate firm through its subsidiary,
New Valley, which also owns interests in hotels, office
buildings, condominiums and apartments.
No analyst tracked by Thompson Reuters follows the stock, so
there are no earnings estimates.
In the most recent quarter, 177 mutual funds reported owning
it and 20 are rated A+ or A in IBD's proprietary 36-Month
Performance Rating, which would put them in the top 10% of all
Earnings in the past two years have risen 7% and 39%, but
sales have declined 4% and 3%.
The five-year annualized EPS growth rate is -1%. It has a
five-year Earnings Stability Factor of 12 on a 0 to 99 scale
where low numbers correspond to stable earnings.
In 1995, it paid a quarterly dividend of 4.3851 cents per
share. Since 2011, it's paid 40 cents a quarter. That works out
to an annualized yield of 7.6%.