Valero Vitality (vlo) finds itself on the display screen of IBD’s dividend leaders after posting robust earnings outcomes whereas delivering a powerful yield.
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Valero Vitality – headquartered in San Antonio, Texas – is the world’s largest oil refining firm. It operates 15 refineries throughout the US, Canada and the UK.
Growing vitality demand has seen the corporate’s earnings soar, with earnings per share rising to $29.16 final yr from simply $2.81 in 2021. To this point in 2023, Valero has continued to report robust outcomes.
Earnings for the second quarter had been introduced in July. Valero reported Earnings per share of $5.40 Exceeding analyst estimates of $5.05. Whereas refining revenues had been down considerably from the prior yr, the corporate reported robust progress in its renewable diesel phase. It noticed $440 million in working earnings in comparison with simply $152 million within the earlier yr.
The second largest producer of renewable diesel
This progress has led Valero to grow to be the second largest producer of renewable diesel on the earth.
Valero presents a stable dividend yield of three.2%, greater than double the typical dividend yield of 1.4% for the S&P 500.
whereas the yield remained unchanged over the past three yearsit has proven a pointy enhance over an extended interval: it has risen by 600% over the previous 10 years.
Valero is properly positioned to proceed to pay a stable yield if vitality costs stay considerably elevated. The corporate is in a very robust place due to the restricted debt it takes on. Complete debt of $9 billion is comparatively small in comparison with the corporate’s market capitalization of $44 billion.
Valero Vitality inventory is trending larger and is at present again above the 200 day EMA.
The inventory is forming a cup backside with a purchase level at 150.39, per MarketSmith sample recognition. A powerful transfer above the resistance round 140 will probably be bullish.
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