Valero Energy Corporation

VLO
Energy
$282.88
1.65%Overvalued

Valero Energy Corporation (VLO) is a Energy company that currently yields 1.65% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $66.04 and the overvaluation threshold at $166.21. Valero Energy Corporation holds a quality score of 68/100 (Good), reflecting 14 consecutive years of dividend growth with a 34% payout ratio. The 5-year dividend CAGR stands at 2.9%.

VLO Dividend Yield History — Weiss Valuation

Underval. $66.04Overval. $166.21

Distance to undervalued

Entry price is stretched

Needs 76.7% downside to reach the Weiss buy zone

Undervaluation starts near $66.04, where the annual dividend would imply roughly 7.06% yield. That is 5.41% above today's yield.

Buy-zone price

$66.04

Target yield

7.06%

Research checklist

What to clear before buying the yield

Updated Jul 9, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

34%

Earnings coverage leaves room for noise.

Cash payout

30%

Free cash flow coverage supports the payment.

Dividend growth

2.9%

Lower growth changes the return trade-off.

What changed

What changed since the last update

2026-07-082026-07-09

Price

+6.3%

$266.22 $282.88

Price rose 6.3% since the prior snapshot.

Dividend yield

-0.10 pp

1.75% 1.65%

Yield compressed from 1.75% to 1.65%.

Why Now?

Valero Energy Corporation is trading near its historical overvaluation band.

Current yield 1.6% vs historical max 6.2% (26% of maximum).

14 consecutive years without a dividend cut.

Conservative payout ratio of 34%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 68/100 quality score calls for selective follow-up, not autopilot.

Start by checking whether payout coverage and business durability still support the dividend.

VLO Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$170

Year 10 Income

$260

Yield on Cost

2.66%

Total Income

$2,112

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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Dividend income log · Yield on cost · DRIP cost basis · Tax reports

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

Track dividends received & tax reports

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VLO Dividend Quality Score

Quality Score

68/ 100

Good

Payout Ratio25/25
Dividend Streak20/25
Growth (CAGR 5Y)8/20
Yield vs History0/15
FCF Coverage15/15

Key Metrics

Current Price$282.88
Annual Dividend$4.66
Current Yield1.65%
Yield — Max (10Y)6.22%
Yield — Min (10Y)2.44%
Undervalued Below$66.04
Overvalued Above$166.21
Payout Ratio33.53%
CAGR Dividend 5Y2.9%
CAGR Dividend 10Y10.3%
Years No Cut14y

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14
consecutive years of dividend growth