Vector Group Just Declared a Quarterly Dividend of $0.40 Per Share



Price movement of Vector Group

Vector Group (VGR) has a market cap of $2.7 billion. VGR fell by 1.2% to close at $22.35 per share on March 2, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -2.1%, -5.2%, and -5.3%, respectively, as of the same day.

Currently, VGR is trading 1.1% below its 20-day moving average, 2.6% below its 50-day moving average, and 1.1% below its 200-day moving average.

The Vanguard Small-Cap ETF (VB) invests 0.06% of its holdings in Vector Group. VB tracks the CRSP US Small-Cap Index. The market-cap-weighted index includes the bottom 2%–15% of the investable universe. The YTD price movement of VB was -4.9% as of March 1, 2016.

The market caps of Vector Group’s competitors are as follows:

  • Philip Morris International (PM)—$141.9 billion
  • Altria Group (MO)—$120.4 billion
  • Reynolds American (RAI)—$72.1 billion
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Vector Group declared dividend

Vector Group has declared a regular quarterly cash dividend of $0.40 per share on its common stock. The dividend will be paid on March 30, 2016, to shareholders on record as of the close of business on March 21, 2016.

Vector Group’s performance in 4Q15 and 2015

Vector Group reported 4Q15 total revenues of $429.6 million, a rise of 2.9% from the total revenues of $417.6 million in 4Q14. Revenue from the tobacco segment fell by 1.1%, and revenue of the real estate segment rose by 11.2% in 4Q15 over 4Q14. It reported restructuring charges of $5.7 million in 4Q15.

The company’s net income and EPS (earnings per share) fell to $6.4 million and $0.05, respectively, in 4Q15, compared with $12.2 million and $0.11, respectively, in 4Q14. It reported pro forma EBITDA (earnings before interest, tax, depreciation, and amortization) of $55.2 million in 4Q15, a rise of 3.8% over 4Q14.

2015 results

In 2015, Vector Group reported total revenues of $1.7 billion, a rise of 4.1% YoY (year-over-year). The company reported restructuring charges and litigation, settlement, and judgement expenses of $20.1 million and $7.3 million, respectively, in 2015, compared with litigation, settlement, and judgement expenses of $2.4 million in 2014.

Vector’s net income and EPS rose to $57.7 million and $0.48, respectively, in 2015, compared with $36.9 million and $0.33, respectively, in 2014. The company reported pro forma adjusted EBITDA of $242.7 million in 2015, a rise of 7.0% YoY.

The price-to-earnings and price-to-sales ratios of Vector Group were 43.0x and 1.7x, respectively, as of March 2, 2016.

In the next part, we’ll look at Mead Johnson Nutrition’s performance as of March 2.


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