Valero Energy Corporation
VLOValero 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
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
14YLong 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
2026-07-08 → 2026-07-09
Price
+6.3%$266.22 → $282.88
Price rose 6.3% since the prior snapshot.
Dividend yield
-0.10 pp1.75% → 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
Sharesight ↗VLO Dividend Quality Score
Quality Score
Good
Key Metrics
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In-depth analysis
→ VLO Dividend Analysis Article