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Valero (VLO) Shares Down 4% Despite Quarterly Dividend Hike

Valero Energy Corporation VLO, a multinational manufacturer and marketer of petroleum-based products, announced late last month that it has received an approval from the board of directors to hike its dividend. Since the announcement on Jan 31, the stock has declined almost 4% despite the positive development. This reflects the effect of inflationary environment on the stock.

The new quarterly dividend of $1.02 per share indicates an increase of 4.1% from the prior quarter’s 98 cents. The record date is fixed at Feb 14, 2023. The dividend will be paid out on Mar 16, 2023 to holders of record at the close of business as on the record date. Valero boasted that the annualized cash dividend has jumped from $3.92 per share to $4.08.

In the United States, Valero is a leading refiner with a refining capacity of 3.2 million barrels per day. VLO’s 15 refineries are spread across Canada, the Caribbean and the United States. Valero has been successful in raising its annualized dividend from 65 cents per share in 2012 to $3.92 in 2022, on the back of its profitable business model.

Zacks Rank & Key Picks

Currently, Valero carries a Zacks Rank #2 (Buy). Other stocks in the energy space include Murphy USA Inc. MUSA, HalliburtonCompany HAL and PBF Energy Inc. PBF.  While Murphy sports a Zacks Rank #1 (Strong Buy), Halliburton and PBF Energy carry a Zacks Rank #2. You can the complete list of today’s Zacks #1 Rank stocks here.

Murphy USA is a low-cost, high-volume fuel seller. Over the past seven days, MUSA has witnessed upward earnings estimate revisions for 2023 and 2024.

Halliburton is well-known for providing products and services to energy companies.  Over the past 30 days, HAL has witnessed upward earnings estimate revisions for 2023 and 2024.

PBF Energy has one of the most complex refining systems in the United States. Thus, the firm has the capacity to generate lighter and better grades of refined products. PBF’s daily processing capacity of 1,000,000 barrels of crude is higher than most of its peers. Over the past seven days, PBF has witnessed upward earnings estimate revisions for 2023.

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Halliburton Company (HAL) : Free Stock Analysis Report

Valero Energy Corporation (VLO) : Free Stock Analysis Report

Murphy USA Inc. (MUSA) : Free Stock Analysis Report

PBF Energy Inc. (PBF) : Free Stock Analysis Report

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