How’s Delek’s Dividend Yield Trending?



Delek’s dividend per share

In this part, we’ll discuss Delek US Holdings’ (DK) dividend yield trend. First, we’ll discuss the company’s dividend payment in the fourth quarter.

Delek’s dividend payments have risen in the past few quarters. In the fourth quarter, Delek paid a dividend of $0.26 per share on December 4. The dividend was announced on November 6. Delek’s dividend payment rose 73% YoY in the fourth quarter.

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Delek’s dividend yield

Delek’s current dividend yield stands at 3.5%. The dividend yield has risen from 2.3% in the fourth quarter of 2017. The rise in the yield is due to a fall in Delek stock and a rise in its dividends during the stated period. From the fourth quarter of 2017 to the fourth quarter, Delek stock has fallen 15%. Most of the fall occurred in the fourth quarter, which we discussed in Part 1 of this series.

In the past few years, Delek has consistently increased shareholders’ returns. In the first nine months of 2018, Delek returned $266 million to shareholders through dividend payments of $59 million and share repurchases of $207 million. Delek has announced that it will repurchase shares worth $150 million in the fourth quarter. The company has announced a new authorization of $500 million for share repurchases. Delek is committed to delivering reliable and growing shareholder returns.

Valero Energy (VLO), Phillips 66 (PSX), and PBF Energy (PBF) have higher dividend yields than Delek. Valero Energy, Phillips 66, and PBF Energy’s current dividend yields are 4.6%, 4.1%, and 4.0%, respectively. However, Marathon Petroleum’s (MPC) dividend yield of 3.4% is lower than Delek’s yield. HollyFrontier’s (HFC) dividend yield is lower at 2.8%.

Next, we’ll discuss how the short interest in Delek has changed.


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