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Valero Energy Stock and Attractive Dividend Yield

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Valero Energy’s dividend per share

Valero Energy’s (VLO) dividend yield has risen steeply in the past few quarters. We’ll discuss Valero Energy’s dividend payment in the second quarter.

Valero Energy’s dividend payments have increased consistently in the past several years. In the second quarter, Valero Energy will pay a dividend of $0.9 per share on June 4. The dividend was announced on April 30. Valero Energy’s second-quarter dividend payment shows 13% year-over-year growth.

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Valero Energy’s dividend yield

Currently, Valero Energy’s dividend yield is 4.7%. The dividend yield has risen from 2.9% in the second quarter of 2018. The yield rose due to growth in Valero Energy’s dividends and a decline in its stock price since the second quarter of 2018. Valero Energy stock fell in the fourth quarter of 2018 and in the second quarter. Since the second quarter of 2018, Valero Energy’s dividend has risen 13%, while the stock has fallen 32%.

Valero Energy has returned wealth to shareholders through dividends and share repurchases. In the first quarter, the company paid $375 million in dividends. The first-quarter dividends were higher than the dividends of $345 million paid in the first quarter of 2018. Valero Energy repurchased $36 million worth of shares in the first quarter.

Along with higher shareholder returns, Valero Energy also focuses on investing in growth projects. The company plans to create an integrated and growth-oriented downstream model. Read Valero’s Earnings Are Poised to Rise with Its Growth Activities to learn more.

Peers’ dividend yield

Although refiners’ dividend yields have also risen, Valero Energy has the highest yield among refiners.

Marathon Petroleum (MPC) and Phillips 66’s (PSX) dividend yields have risen from 2.5% in the second quarter of 2018 to 4.2% and 4.3%, respectively. Delek US Holdings’ (DK) dividend yield has increased from 1.7% to 3.3% during the same period. PBF Energy (PBF) and Holly Frontier’s (HFC) yields have risen to 4.2% and 3.2%, respectively.

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