Valero Energy Corporation Increases Regular Cash Dividend

Rhea-AI Summary

Valero Energy Corporation (NYSE: VLO) has approved an increase in its regular quarterly cash dividend on common stock from $1.02 per share to $1.07 per share. The dividend is payable on March 4, 2024, to holders of record at the close of business on February 1, 2024. The increase raises the annualized cash dividend rate on Valero’s common stock to $4.28 per share. Valero will host a conference call on January 25, 2024, at 10 a.m. ET to discuss fourth quarter and full year 2023 earnings results and provide an update on company operations.

Insights

Financial Analyst

The decision by Valero Energy Corporation to raise its quarterly cash dividend represents a notable development for shareholders and could be seen as a signal of financial strength and confidence in the company's future earnings potential. An increase in dividend payout often suggests that a company is generating sufficient cash flow and has a stable earnings outlook, which can be attractive to investors seeking income-generating investments. The new annualized dividend rate of $4.28 per share is a key figure for dividend yield calculations, which are critical for income-focused portfolios.

It is important to analyze the dividend payout ratio, which is the proportion of earnings paid out as dividends to shareholders. If this ratio is sustainably low, it can indicate that the company has room to grow its dividend in the future. Conversely, a high payout ratio might raise concerns about the company's ability to maintain or increase dividends if earnings decline. Investors should also consider the company's historical dividend growth rate and compare it with industry peers to gauge the competitiveness of the yield.

Market Research Analyst

Valero's dividend increase may be interpreted as a positive market signal, potentially influencing investor sentiment and the company's stock market performance. Dividend policy changes can impact the stock price as they reflect management's expectations regarding future profitability and cash flow. Investors often view dividend increases as a commitment to returning value to shareholders, which can enhance the company's appeal to both current and prospective investors.

Furthermore, the timing of the dividend announcement in proximity to the earnings call could be strategic, as it may set a positive tone for the upcoming financial results discussion. It is essential to monitor the market's reaction to both the dividend increase and the earnings report to assess the overall impact on the company's valuation.

SAN ANTONIO--(BUSINESS WIRE)-- The Board of Directors of Valero Energy Corporation (NYSE: VLO, “Valero”) has approved an increase in the company’s regular quarterly cash dividend on common stock from $1.02 per share to $1.07 per share. The dividend is payable on March 4, 2024 to holders of record at the close of business on February 1, 2024. The increase in the dividend raises the annualized cash dividend rate on Valero’s common stock to $4.28 per share.

As a reminder, Valero will host a conference call on January 25, 2024, at 10 a.m. ET to discuss fourth quarter and full year 2023 earnings results, which will be released earlier that day, and to provide an update on company operations. Persons interested in listening to the presentation live via the internet may log on to Valero’s website at investorvalero.com.

About Valero
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 owns two renewable diesel plants located in the U.S. Gulf Coast region with a combined production capacity of approximately 1.2 billion gallons per year, and Valero owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.6 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit investorvalero.com for more information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240118773933/en/

Investors:

Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982

Eric Herbort, Director – Investor Relations and Finance, 210-345-3331

Gautam Srivastava, Director – Investor Relations, 210-345-3992

Media:

Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002

Source: Valero Energy Corporation

FAQ

What is the new quarterly cash dividend on Valero's common stock?

The new quarterly cash dividend on Valero's common stock is $1.07 per share.

When is the dividend payable?

The dividend is payable on March 4, 2024.

What is the annualized cash dividend rate on Valero's common stock after the increase?

The annualized cash dividend rate on Valero's common stock is $4.28 per share.

When will Valero host a conference call to discuss earnings results and company operations?

Valero will host a conference call on January 25, 2024, at 10 a.m. ET.

Where can interested persons listen to the presentation live via the internet?

Interested persons may log on to Valero’s website at investorvalero.com to listen to the presentation live via the internet.