then short the damn stock and pay us that dividend! You obviously don't own the stock since all you do is bash. so you are either a short or just a bored kid. If you are a bored kid, regardless of age, then we can't do much to stop you bashing. If you are a short, keep shorting and paying us the dividend. You do know the shorts have to pay that "fake" dividend right?
"I am not a stock touter, I am just trying to discuss the company with fellow shareholders. For me, this company is a risky investment and my holdings are much smaller than holdings in Altria. "
I agree that this company is riskier than MO/etc - and I too own much less VGR than MO. I only started to buy VGR in 2004 because of Icahn being a big holder as well as what seems to be an insane yield. Despite the stock fall from $15 to the current $11, the reinvested divs/etc still have me 50% higher (although at one point I was at a clean double).
Of course, buying MO in 2004 probably created a better profit with reinvested dividends and their spinoffs, although I'm not sure as to how much... and I still think that MO / PM are overall safer/better to own. Of course, their history is a big factor.
ITY/BTI have both been disappointments; I only recently bought LO after foolishly thinking that L (Loews) would do a stock spinoff as well. Doh!
UST may be the only major stock that rose for 2008 - I'm very happy MO bought it, even though years ago I used to joke that UST had better market value and cash and could have bought Reynolds (RAI).
Good luck to us tobacco longs! As of now they're the only stocks in my portfolio that haven't failed for me.
ok, well that is your prediction. I have not made a prediction, I just explained why it is not logical to argue from the specific to the general. You just did the same thing the OP did, you gave pfizer as an example, again a non sequitor.
Pfizer started falling when their pipeline was depleted. I still believe people buy smokes, and VGR spends very little on R&D, it is in their 10K.
BTW, I think people are investing in stocks to make money, not just for the dividend. I am surprised you through in MO as an example since MO has been an excellent investment over the last few years, over the last 10 years, and over the last 70 years. I in no way put VGR in the same league.
anyway, enough "debating" whatever it is you, a couple other posters, and I are debating, I just try to get info on my stocks, this is only one of many, I hope no one has it all in this one or in tobacco.
GL to all on your investments :)
PFZ use to increase their Div for years, not anymore.
I think the trick here is that folks who only invest in VGR, or MO, for the Div return will be disapointed in 2009 as the world economy re-aligns
yes it does work this way.
vgr pays more then they make on a continued basis, not just once in awhile.
part of the dividend is also a return of capital yearly.
vgr issues new debt and sales stock to pay the dividend.
i must of learned that in stocks 103.
Yes and no.. I agree that GE is running into the ground, and I understand that tobacco is different...but running a business in todays economy is all about keeping a positive cash balance so you can protect against the uncertainty of 2009.
The current VGR div is so out-of-line with other investment returns that it would be reasonable to anticipate a div cut in Q1 or Q2 of 2009 to protect cash...business is business
Hey BB, I need a little advice if you have the time. I'm heavy in MO (30% of my stock portfolio)... and I feel my investment (and dividend) is very secure. I just started my DD on VGR and I'm now contemplating whether to invest more in MO or give VGR a chance. The divy looks extremely attractive but the debt concerns me. Your opinion on this board seems to carry some weight. I appreciate your time and wish you the very best.
...Now that VGR’s current price is $13.51 and its Price to Cash Earnings ratio is 12.28, we are very positive on its outlook from the cash earnings perspective. In fact, VGR is now trading a full 28% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why VGR has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for VGR to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
The estimated annual dividend for VGR is $1.60 producing a current dividend yield of 11.84%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from VGR against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from VGR over previous years was 17.05% while the lowest dividend yield was 3.43%. If you are looking for some “bang for your buck” then a dividend yield of 15.63% above the historical median should be enticing. VGR receives a positive boost in our view because as you know, equity at its core is simply a claim on future dividends...