Vector Group (VGR) is the 4th largest tobacco company in the US.  Vector Group has a market cap of just $2.3 billion, making it significantly smaller than its larger rivals. The company sells discount tobacco products under the Pyramid, Liggett, Eagle20's, Grand Prix, and Eve brands.  In addition, Vector Group has significant real estate investments totaling around $150 million. The company owns about 70% of Douglas Elliman Realty, which is the largest residential real estate brokerage in New York.  Doug Elliman realty also has a presence in South Florida and California.

Investors may be enticed by Vector Group's dividend yield of nearly 8%.  The company has not reduced its dividend payments (excluding special dividends) since 1995.  Vector Group is a shareholder friendly business as evidenced by its extremely high dividend yield and long history of dividend payments.  The company is the highest yielding stock in the Dividend Achievers Index.  The Dividend Achievers Index is made up exclusively of businesses with 10 or more years of consecutive dividend payments.  Vector Groups current events, competitive advantage, and future growth prospects are analyzed in this article.

Business Overview

Vector Group's operations are split into three segments:  Tobacco, Real Estate, and E-Cigarettes.   Each segment's percentage of total adjusted revenue generated in the last 12 months is shown below to give an idea of the relative importance of each segment:

Vector Group's E-Cigarette operations are still in their infancy.  The company will likely garner a small portion market share in E-Cigarettes in the US just as it has done in traditional cigarettes.  Vector Group does not have the advertising or research and development strength larger tobacco companies have to outcompete them in E-Cigarettes.