Dividend Overview
Dividend Yield
1.97%
Dividend / Share
$4.61
Valero Energy Corp
Exchange: NYSESector: EnergyIndustry: Oil & Gas Refining & Marketing
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which produces low-carbon fuels including renewable diesel and sustainable aviation fuel (SAF), with a production capacity of approximately 1.2 billion gallons per year in the U.S. Gulf Coast region. See the annual report on Form 10-K for more information on SAF. Valero also owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.7 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments.
Did you know?
VLO's revenue grew at a 2.1% CAGR over the last 6 years.
Current Price
$233.83
-0.23%GoodMoat Value
$115.80
50.5% overvaluedProfile
Valuation (TTM)
Market Cap$71.32B
P/E30.37
EV$78.34B
P/B3.01
Shares Out305.01M
P/Sales0.58
Revenue$122.69B
EV/EBITDA11.33
Valero Energy Corp (VLO) Dividends
GoodMoat Analysis
Valero's dividend appears sustainable from a cash flow perspective, but its low payout ratio and modest yield reflect the cyclical and capital-intensive nature of the refining business. The company's strong balance sheet and free cash flow provide a solid foundation for the current payout, but dividend growth is tied to volatile earnings.
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For an income-focused value investor, Valero's dividend profile presents a mixed picture. The dividend yield of 1.96% is below the broader energy sector average, which often exceeds 3-4%, making it less attractive for pure yield seekers. The key positive is the dividend's sustainability from a cash flow standpoint. With a Free Cash Flow (FCF) Yield of 5.6%, the company generates sufficient cash to comfortably cover the dividend, implying a conservative FCF payout ratio. This aligns with the 'Strong' balance sheet quality indicator from the framework, evidenced by a moderate Debt/Equity ratio of 0.45, which is well below the concerning threshold of 1.0x Debt/EBITDA. However, the low GAAP profit margin of 1.9% and negative revenue growth highlight the earnings volatility inherent in refining. The dividend's growth is therefore not consistent but rather follows the cyclical peaks and troughs of refining margins. While the payout is secure, it lacks the predictable, compounding growth characteristic of high-quality dividend aristocrats. The capital is likely retained for reinvestment in the business and share buybacks, which are common in this sector.
Key Metrics
Market Cap
$71.32B
P/E Ratio
30.37
Forward P/E
—
EPS
$7.57
PEG Ratio
0.10
Book Value
$77.78
Dividend Yield
1.97%
Profit Margin
1.91%
ROE
9.90%
Dividend History
Dividend Safety
VLO Dividend Analysis
Valero Energy Corp (VLO) dividend analysis including yield, payout history, and sustainability metrics. The current dividend yield is 1.97%. The annual dividend per share is $4.61.
P/E ratio: 30.37. Profit margin: 1.91%. Free cash flow: $4.01B. This page shows Valero Energy Corp's dividend overview, key metrics, historical payout data, and dividend safety assessment to help income-focused investors evaluate the sustainability of dividend payments.
GoodMoat's dividend analyzer evaluates payout ratios, earnings coverage, and free cash flow coverage to determine how well supported Valero Energy Corp's dividend payments are. Use this analysis alongside the company's financial statements and quality score to make informed income-investing decisions.