PBF Energy Is Ranked Third Based on the Dividend Yield



PBF Energy’s dividend yield

In the previous part, we analyzed Phillips 66’s (PSX) dividend yield. Phillips 66 is the second-highest dividend-yielding stock. In this part, we’ll analyze PBF Energy’s (PBF) dividend yield. PBF Energy occupies the third spot on the list of six dividend-yielding refining stocks that we’re discussing in this series. PBF Energy’s market cap of ~$4 billion makes it the second-smallest stock.

PBF Energy has a current dividend yield of 3.6%. In the fourth quarter, PBF Energy made a dividend payment of $0.3 per share. The dividend was announced on October 31 and paid on November 30. PBF Energy has consistently paid dividends despite refining margin volatility in the past three years. The dividends remained stable during this period. PBF Energy made a dividend payment of $0.3 per share on November 24, 2015.

Article continues below advertisement


PBF Energy traded at a forward PE ratio of 9.1x in the first quarter of 2016. The forward PE ratio has declined to the current levels of 7.4x. However, the stock trades above the peer average of 7.3x.

Recently, PBF Energy traded at discounted valuations. The discounted valuations were mainly due to high RIN (renewable identification number) expenses, which consistently dented the company’s earnings. Valero Energy (VLO) has also suffered the brunt of high RIN expenses. PBF Energy’s RIN expenses were ~$300 million in 2017.

In 2018, due to weakening RIN prices, PBF Energy’s RIN expenses declined. PBF Energy expects its RIN expenses to be $150 million–$175 million in 2018, which represents a year-over-year decline.

Next, we’ll discuss Delek US Holdings’ dividend yield.


More From Market Realist