Tuesday, December 29, 2015

Adding VGR

I decided to add shares of Vector Group Ltd(VGR) on 12/28/15. Remember you can follow at @LngHaulInvestor.

When I looked at the portfolio weighting in the revised spreadsheet I noticed that the pick represented less than 1% of the portfolio. While it is a smaller market cap company compared to some of the big names on the list, I felt the stock should have a bit more weighting overall. Additionally I'm not feeling 100% comfortable with the economic outlook at this time and tobacco stocks have historically provided relative safety.  I expect equities to continue rising, although not straight up, I feel the continuing worldwide events and falling commodity prices have yet to fully play out for investors so I want to add to safe stocks.

My guess is that for 2016 the dividend is raised to .41-.42. Also remember that the company has been paying a yearly 5% stock dividend. That is usually done in September and investors will need to take note of it for yearly income tax reporting.  You can access more information on the companies website.   That gives us a total dividend of around 11.75%. It's not easy finding that kind of return on dividends alone in any security. I think this one is safe enough for the portfolio.

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