Dividend: The world's largest refiner, Valero, delivers a solid dividend

Valero Vitality (vlo) finds itself on the display of IBD’s dividend leaders after posting sturdy earnings outcomes whereas delivering a powerful yield.


Valero Vitality – headquartered in San Antonio, Texas – is the world’s largest oil refining firm. It operates 15 refineries throughout america, Canada and the UK.

Growing vitality demand has seen the corporate’s earnings soar, with earnings per share rising to $29.16 final 12 months from simply $2.81 in 2021. To this point in 2023, Valero has continued to report sturdy outcomes.

Earnings for the second quarter have been introduced in July. Valero reported Earnings per share of $5.40 Exceeding analyst estimates of $5.05. Whereas refining revenues have been down considerably from the prior 12 months, the corporate reported sturdy progress in its renewable diesel section. It noticed $440 million in working earnings in comparison with simply $152 million within the earlier 12 months.

The second largest producer of renewable diesel

This progress has led Valero to grow to be the second largest producer of renewable diesel on this planet.

Valero provides a stable dividend yield of three.2%, greater than double the typical dividend yield of 1.4% for the S&P 500.

whereas the yield remained unchanged over the past three yearsit has proven a pointy enhance over an extended interval: it has risen by 600% over the previous 10 years.

Valero is effectively positioned to proceed to pay a stable yield if vitality costs stay considerably elevated. The corporate is in a very sturdy place due to the restricted debt it takes on. Complete debt of $9 billion is comparatively small in comparison with the corporate’s market capitalization of $44 billion.

Valero Vitality inventory is trending greater and is at the moment again above the 200 day EMA.

The inventory is forming a cup backside with a purchase level at 150.39, per MarketSmith sample recognition. A powerful transfer above the resistance round 140 will likely be bullish.

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