Vector Group Announces Reduction in Future Quarterly Cash Dividends
MIAMI--(BUSINESS WIRE)--Nov. 5, 2019--
Vector Group Ltd. (NYSE: VGR) today announced that its Board of Directors has declared a regular quarterly cash dividend on its common stock of $0.40 per share. The quarterly cash dividend will be payable on December 30, 2019 to holders of record as of December 17, 2019.
Vector Group also announced that its Board of Directors has decided to reduce the Company’s quarterly cash dividend to $0.20 per share, effective the first quarter of 2020, and that the Company will no longer pay an annual stock dividend. The amount of the quarterly cash dividend and the payment of any annual stock dividend are subject to the Board’s regular evaluation of the Company’s dividend policy and capital allocation strategy. A quarterly cash dividend remains an important component of the Company’s capital allocation strategy.
The Company’s Board of Directors regularly evaluates the Company’s dividend policy as well as the Company’s capital allocation strategy. As part of this evaluation, the Company’s Board has determined that reducing the quarterly cash dividend and discontinuing the annual stock dividend is in the best interest of the Company and its stockholders. The reduced dividend will strengthen the Company’s balance sheet and help it maintain its liquidity, while it meets its obligations and continues to invest in its businesses to drive long-term stockholder returns.
Vector Group is a holding company for Liggett Group LLC, Vector Tobacco Inc., New Valley LLC, and Douglas Elliman Realty, LLC. Additional information concerning the company is available on the Company's website, www.VectorGroupLtd.com.
This announcement contains “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements include information relating to our intent, belief or current expectations, including with respect to dividends. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement, including the risk factors described in the Company’s annual report on Form 10-K for the year ended December 31, 2018, as filed with the Securities and Exchange Commission (“SEC”), and on Form 10-Q for the quarterly period ended June 30, 2019, as filed with the SEC. Although we believe the expectations reflected in these forward-looking statements are based on reasonable assumptions, there is a risk that these expectations will not be attained and that any deviations will be material. The forward-looking statements speak only as of the date they are made.
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Source: Vector Group Ltd.
Emily Claffey/Benjamin Spicehandler/Columbia Clancy
Sard Verbinnen & Co