On January 31, 2023, Valero Energy Corporation (VLO) announced that it will raise its quarterly dividend by 4.1% to $1.02 per share. This is the first dividend hike by the refiner since 2020, when a dividend hike of 8.9 percent to $0.98 per share was announced, at the time marking 10 straight years of dividend growth.
The dividend is payable on March 16, 2023 to holders of record at the close of business on February 14, 2023. The increase in the dividend raises the annualized cash dividend rate on Valero’s common stock to $4.08 per share. This yields 2.9% at a stock price of $140 for VLO.
Valero Energy Corporation, through its subsidiaries, is an international manufacturer and marketer of transportation fuels, other petrochemical products and power. The company is a manufacturer and marketer of transportation fuels and petrochemical products. Valero operates petroleum refineries and ethanol plants. The petroleum refineries are located in the United States (U.S.), Canada and the United Kingdom (U.K.), and the ethanol plants are located in the Mid-Continent region of the U.S. Valero also is a joint venture partner in Diamond Green Diesel, which operates a renewable diesel plant in Norco, Louisiana. Diamond Green Diesel is North America’s largest biomass-based diesel plant. Valero sells its products in the wholesale rack or bulk markets in the U.S., Canada, the U.K., Ireland and Latin America.