Get paid 9.4% to own this smoking stock. (September 05, 2012)
VGR
I’m Dan Fitzpatrick at StockMarketMentor.com on Wednesday, September 5th. I want to look real quick at Vector Group ( $VGR Vector Group Ltd ), cigarette company. Here’s why, a few different reasons; first of all the stock has been in this consolidation period really for the last few months, like right there forming a bit of a flat top, a series of higher lows, and what we really want to look at as far as a trading tactic here is either a break-out say above the 200 day moving average or preferably some kind of a pull-back so that we’re more in line with this last support level, which would be great, or even a pull-back to here, which would be even better; here’s why, it’s a 9.4 percent dividend, that’s a pretty hefty dividend. Now, it only trades about 506,000 shares, that’s what it traded today so don’t everybody buy at once, but with a 9.4 percent dividend and the stock well off of it’s highs, you can see the pattern here; this is a stock that has good support, but also this 20.5 that’s a short interest ratio, there’s a lot of folks that are shot this stock which means that any kind of price advance is probably really going to goose this stock and you’re going to get more of a move, even if that doesn’t happen a 9.4 percent yield, that’s what you get paid to hold on to this stock for a year; that kind of works for me. I hope this helps. Members over to the Strategy Session. Free Chart