Valero Energy Corporation (NYSE:VLO) stock is about to trade ex-dividend in three days. The ex-dividend date is usually set to be one business day before the record date, which is the cut-off date on which you must be present on the company’s books as a shareholder in order to receive the dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least one business day to settle. Meaning, you will need to purchase Valero Energy’s shares before the 5th of February to receive the dividend, which will be paid on the 9th of March.
The company’s next dividend payment will be US$1.20 per share. Last year, in total, the company distributed US$4.80 to shareholders. Last year’s total dividend payments show that Valero Energy has a trailing yield of 2.6% on the current share price of US$181.43. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether Valero Energy can afford its dividend, and if the dividend could grow.
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Valero Energy is paying out an acceptable 59% of its profit, a common payout level among most companies.
See our latest analysis for Valero Energy
Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.
NYSE:VLO Historic Dividend February 1st 2026
Businesses with strong growth prospects usually make the best dividend payers, because it’s easier to grow dividends when earnings per share are improving. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Fortunately for readers, Valero Energy’s earnings per share have been growing at 11% a year for the past five years. Valero Energy has an average payout ratio which suggests a balance between growing earnings and rewarding shareholders. Given the quick rate of earnings per share growth and current level of payout, there may be a chance of further dividend increases in the future.
Another key way to measure a company’s dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, 10 years ago, Valero Energy has lifted its dividend by approximately 12% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.
Has Valero Energy got what it takes to maintain its dividend payments? Earnings per share are growing nicely, and Valero Energy is paying out a percentage of its earnings that is around the average for dividend-paying stocks. In summary, Valero Energy appears to have some promise as a dividend stock, and we’d suggest taking a closer look at it.
On that note, you’ll want to research what risks Valero Energy is facing. For example – Valero Energy has 2 warning signs we think you should be aware of.
A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.