I just bought a new stock for a Wealth Builder Portfolio.
I bought 500 shares of Vector Group (VGR). Vector Group Ltd. is a holding company. The Company is engaged in the manufacture and sale of cigarettes in the United States through its Liggett Group LLC (Liggett) and Vector Tobacco Inc. (Vector Tobacco) subsidiaries, and the real estate business through its New Valley LLC subsidiary, which is seeking to acquire or invest in additional real estate properties or projects. The Company’s segments include Tobacco, E-Cigarettes and Real Estate.
VGR is a solid company. The stock is up 38% in the last year, outpacing the S&P and the DOW. The consensus rating is a hold but Zack’s has VGR as a strong buy. Of course we love when our stocks move but I’m mainly in this position for the dividend for the growth of shares. This stock has a very nice 11.8% dividend at my buy in price of $13.50. The reason I love this stock is they consistently paid and raised their dividend for 20 consecutive years. When you buy a stock for the dividend you want to make sure the stock will be able to pay it. With VGR’s track record I feel it worthy of being in my Double Dipping Portfolio. The next dividend payment will be at the end of March. The dividend payment will be in the form of shares with dividend reinvestment.
When doing my Technical Analysis I like what I see. The 8 Day, 50 Day and 200 Day Moving averages are aligned perfectly. The stock has been in an uptrend since last June and the RSI is still only at 55. The stock’s comfortable range has been in the $25 area the last few years. If I can collect this great dividend and the stock returns to that area I’ll hold the stock a long time.
I set a Trailing Stop order at 20%. If the stock gets up to the $14.85 area I move my Trailing Stop to 25%. I will look to sell the stock if it gets down to $10.80 or if they cut or reduce their dividend.
Buy 500 Shares VGR @ $13.50
This stock will be held in my Double Dipping Portfolio along with OXY, T and GCI.
Successful trading,
Steve
The Options Coach