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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. 


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