Valero Energy’s (VLO) dividend payments have been rising in the past few years. In the first quarter, Valero Energy paid a dividend of $0.90 per share, which represents 29% growth from the first quarter of 2017. The dividend was announced on January 24 and paid on March 5.
Analysts expect Valero Energy’s dividend payment per share to be stable sequentially at $0.90 per share in the second quarter. In 2017 and 2018, Valero Energy raised its dividend payment in the first quarter, which kept it stable for the rest of the quarters. In 2019, the company increased its payment in the first quarter. Valero Energy might follow the trend and keep its dividend payment steady in the second quarter.
Valero Energy’s dividend yield stands at 4.3%. The company has consistently returned wealth to shareholders in the form of dividends and share buybacks. In 2018, Valero Energy paid $1.4 billion in dividends. The dividends in 2018 were higher than the dividends paid in 2017 and 2016, which stood at $1.2 billion and $1.1 billion. Valero Energy bought back $1.7 billion worth of shares in 2018. The company’s share buybacks were $1.4 billion in 2017 and $1.3 billion in 2016. Valero Energy’s dividends and share buybacks have risen sharply in the past three years.
Peers’ dividend yield
Valero Energy’s dividend yield is the highest among its US peers. Phillips 66 (PSX), HollyFrontier (HFC), and Delek US Holdings (DK) have dividend yields below 3.5%. However, Marathon Petroleum (MPC) and PBF Energy (PBF) have better yields.
Phillips 66, HollyFrontier, and Delek US Holdings’ current dividend yields are 3.4%, 2.7%, and 3.0%, respectively. Marathon Petroleum and PBF Energy’s yields are 3.5% and 3.9%, respectively.
Among the 19 analysts that cover Valero Energy, 14 recommended a “buy” or “strong buy,” while five recommended a “hold.”
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