Valero Energy (VLO) is a Top Dividend Stock Right Now: Should You Buy?

Company Overview - Valero Energy (VLO) is headquartered in San Antonio and operates in the Oils-Energy sector [3] - The stock has experienced a price change of 19.26% since the beginning of the year [3] Dividend Information - Valero Energy currently pays a dividend of $1.13 per share, resulting in a dividend yield of 2.47% [3] - The Oil and Gas - Refining and Marketing industry's average yield is 2.49%, while the S&P 500's yield is 1.36% [3] - The company's annualized dividend of $4.80 has increased by 6.2% from the previous year [4] - Over the last five years, Valero Energy has raised its dividend three times, averaging an annual increase of 3.05% [4] - The current payout ratio is 42%, indicating that 42% of its trailing 12-month EPS is distributed as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Valero Energy's earnings in 2026 is $12.27 per share, with an expected increase of 15.65% from the previous year [5] - Strong earnings growth is anticipated for the current fiscal year [5] Investment Considerations - Valero Energy is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - Income investors should note that high-yielding stocks may face challenges during periods of rising interest rates [6]