VLO’s dividend yield
Valero Energy (VLO) has consistently delivered returns to shareholders in the form of dividends. The dividend yield is estimated as a ratio of the annualized dividends to the price of the stock. Valero’s dividend yield has risen from 2% in 1Q14 to 4.3% in 1Q17 due to the steeper rise in dividends compared to the increase in the stock price during the stated period.
Dividend yield of peers
In the same period, Phillips 66’s (PSX) dividend yield rose from 2.1% to 3.0% while Tesoro’s (TSO) dividend yield improved from 1.9% to 2.7%. Marathon Petroleum’s (MPC) dividend yield rose even more sharply from 1.9% to 3.0%. For exposure to high dividend stocks, investors can consider the Vanguard High Dividend Yield ETF (VYM). The ETF also has ~10% exposure to energy sector stocks.