Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cigarette maker Vector Group (NYSE:VGR) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Vector and see what CAPS investors are saying about the stock right now.

Vector facts

Headquarters (Founded)

Miami (1911)

Market Cap

$1.5 billion

Industry

Tobacco

Trailing-12-Month Revenue

$563.2 million

Management

CEO Howard Lorber

CFO Bryant Kirkland

Return on Capital (Average, Past 3 Years)

21.3%

Cash/Debt

$415.9 million / $672.3 million

Dividend Yield

10%

Competitors

Lorillard (NYSE: LO)
Reynolds American
(NYSE: RAI)

Sources: S&P Capital IQ and Motley Fool CAPS.

Just yesterday, CAPS member rknapton succinctly summed up the Vector bear case for our community:

Short. Cigarette manufacturer and seller is going to face headwinds obviously. Looks like mostly [U.S. operations] so especially here. Revs have stopped growing, earnings have been declining and they have quite a bit of debt. And why the heck are they issuing a ton of debt to finance a 10% dividend. Stupid. Not to mention insiders know this and sold over a million shares.


Fool contributor Brian Pacampara and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.