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Valero Energy Corporation (VLO) logo

Valero Energy Corporation

S&P 500
VLO|Energy|Oil & Gas Refining & Marketing|$241.06|P/E 17.6|MCap 71.6B|NYSE

Last update: May 9, 2026 at 09:32

Dividend Safety Rating

72/ 100Safe

VLO's dividend appears safe and well-supported. Strengths include a 33.5% earnings payout ratio & 25.4% fcf payout ratio. Areas of concern: 6.0% operating margin & 6.3% gross margin.

Based on 15 of 15 metrics

Strengths

  • Earnings Payout Ratio: 33.5%Low earnings payout ratio leaves room to grow the dividend.
  • FCF Payout Ratio: 25.4%Free cash flow comfortably covers the dividend.
  • Debt-to-Equity: 42.7Conservative debt level relative to equity.

Risks

  • Gross Margin: 6.3%Gross margin is low and limits flexibility.
  • Operating Margin: 6.0%Operating margin is thin and pressures the dividend.
  • Profit Margin Stability: VolatileProfit margins have been volatile.

Payout & Coverage

Very Safe
Earnings Payout Ratio
33.5%Very Safe
FCF Payout Ratio
25.4%Very Safe
CFO Payout Ratio
32.2%Safe
Interest Coverage
6.4xSafe

Balance Sheet

Safe
Net Debt / Total Assets
12.1%Safe
Current Ratio
1.6xSafe
Debt-to-Equity
42.7Very Safe

Profitability

Warning
Return on Equity
15.8%Safe
Operating Margin
6.0%Warning
Gross Margin
6.3%Danger
Profit Margin Stability
VolatileWarning

Dividend Track Record

Safe
Dividend Streak
11+ yrsVery Safe
Dividend Cut
NoneVery Safe
5-Year Dividend CAGR
2.9%Caution
Earnings Stability
Mostly StableCaution

About Valero Energy Corporation

Valero Energy Corporation is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. Operating primarily across the United States, Canada, the United Kingdom, Ireland, and Latin America, the company owns 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day, producing gasoline, diesel, jet fuel, heating oil, and asphalt. Beyond refining, Valero operates significant renewable fuel operations, including 12 ethanol plants with a combined annual production capacity of approximately 1.7 billion gallons. The company manages an extensive logistics network comprising pipelines, terminals, rail, and marine assets to transport feedstocks and finished products. Valero operates through three primary business segments: Refining, Renewable Diesel, and Ethanol. Headquartered in San Antonio, Texas, and founded in 1980, Valero serves individual consumers, businesses, and government sectors through direct sales and distribution partnerships with retailers and resellers, maintaining a significant position in the global energy market.

Dividend Overview

Dividend Yield

1.90%

Annual Dividend

$4.59

Frequency

Quarterly

Payout Ratio

33.53%

FCF Payout Ratio

25.36%

Stock Price

$241.06

52-Week Range

$117.71 $258.43

Dividend History (2016–2025)

VLO annual dividend per share and yield history

Earnings & Profitability

VLO earnings per share and net profit margin

Key Dates

Next Ex-Dividend Date

May 21, 2026

Last Payment Date

March 9, 2026

Dividend Growth

3-Year Dividend CAGR

4.86%

5-Year Dividend CAGR

2.89%

10-Year Dividend CAGR

10.27%

3-Year Total Growth

15.31%

5-Year Total Growth

15.31%

10-Year Total Growth

165.88%

Income Calculator

VLO Dividend Calculator

Total Investment

$24,106.00

Annual Income

$459.00

Quarterly Income

$114.75

Monthly Income

$38.25

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Frequently Asked Questions

What is VLO's current dividend yield?
Valero Energy Corporation (VLO) currently has a dividend yield of 1.90%, based on a stock price of $241.06 and an annual dividend of $4.59.
When is VLO's next dividend payment date?
VLO's next ex-dividend date is 2026-05-21 and the next payment date is 2026-03-09. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does VLO pay in dividends per year?
Valero Energy Corporation paid $4.52 per share in annual dividends in 2025. The dividends are paid quarterly.
Has VLO been increasing its dividend?
Valero Energy Corporation has grown its dividend at a 5-year CAGR of 2.89% and a 10-year CAGR of 10.27%.
Is VLO's dividend safe?
Valero Energy Corporation has a payout ratio of 33.53%. Its free cash flow payout ratio is 25.36%. A payout ratio below 60% is generally considered sustainable.
How is VLO's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates Valero Energy Corporation's dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for energy companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.