Vector Group Ltd (VGR)

[EZ2]

excerpt..........


A portfolio with the greatest possible diversification benefits can be built by owning about two companies from each of these classifications. Here's an example. I've selected companies with low-ish price-to-earnings (P/E) ratios and high-ish returns on equity (ROE) relative to the industry averages. That combination of factors has historically produced better-than-average returns:

GICS
Company
P/E
ROE

Energy
Hess (NYSE: HES)
17
20%

Materials
DuPont (NYSE: DD)
15
29%

Industrials
Gehl (Nasdaq: GEHL)
9
10%

Consumer Discretionary
Vector Group (NYSE: VGR)
15
75%

Consumer Staples
Archer-Daniels-Midland (NYSE: ADM)
12
19%

Health Care
DaVita (NYSE: DVA)
14
26%

Financials
Waddell & Reed Financial (NYSE: WDR)
22
40%

Information Technology
Microsoft
17
48%

Telecom
France Telecom (NYSE: FTE)
9
22%

Utilities
Energen
15
24%

*Data from Capital IQ.