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Vector Group: An Unsafe Dividend.

Vector Group (VGR)

Vector Group is a discount ciggarette maker with a large real estate subsidiary. The stock is attractive to retail investors because of its healthy 7.33% dividend yield. However, it is hard to justify the safety of this dividend when looking at free cash flow metrics.


Cash flow does not cover the dividend. 


Conclusion:

VGR's high yeild is attractive, but it wont last.