Hello, Looking at putting money in VGR and just wondering if there's some off-balance sheet items/depreciation, etc. where the company gets cash for the big dividend...I saw in this previous year there were $110M in borrowings and $115M in dividends paid so is the company essentially borrowing to pay the dividend/something else?
It's the real estate part that gives them the money, they buy and sell commercial properties and very good at it. They are, or, have already taken opportunities in the depressed property values. I no longer hold because div is not worth risk, can buy T with 30% upside on PPS and almost 7% DIV. IMHO this should be only a small part of your portfolio.
i am in big and down big and like i always say this mgmt provides no updates or news to shareholders. what about douglas elliman realty. they are one of the largest in new york and vgr owns 50% but what is their profit on such holding. i can never figure it out. in good markets or bad markets real estate transactions always occur such commissions are coming in but... good luck to all