Valero Energy Corporation
VLOValero Energy Corporation (VLO) is a Energy company that currently yields 1.86% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $65.05 and the overvaluation threshold at $159.35. 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 73.7% downside to reach the Weiss buy zone
Undervaluation starts near $65.05, where the annual dividend would imply roughly 7.06% yield. That is 5.20% above today's yield.
Buy-zone price
$65.05
Target yield
7.06%
Research checklist
What to clear before buying the yield
Updated May 25, 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
2026-05-23 → 2026-05-25
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
Valero Energy Corporation is trading near its historical overvaluation band.
Current yield 1.9% vs historical max 6.2% (30% 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
$191
Year 10 Income
$300
Yield on Cost
3.07%
Total Income
$2,410
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗VLO Dividend Quality Score
Quality Score
Good
Key Metrics
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In-depth analysis
→ VLO Dividend Analysis Article