Valero Energy Corporation

VLO
Energy
$425.81
1.11%Overvalued

Valero Energy Corporation (VLO) is a Energy company that currently yields 1.11% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $67.03 and the overvaluation threshold at $179.15. Valero Energy Corporation holds a quality score of 68/100 (Good), reflecting 14 consecutive years of dividend growth with a 19% payout ratio. The 5-year dividend CAGR stands at 2.9%.

VLO Dividend Yield History — Weiss Valuation

Underval. $67.03Overval. $179.15

Distance to undervalued

Entry price is stretched

Needs 84.3% downside to reach the Weiss buy zone

Undervaluation starts near $67.03, where the annual dividend would imply roughly 7.06% yield. That is 5.95% above today's yield.

Buy-zone price

$67.03

Target yield

7.06%

Research checklist

What to clear before buying the yield

Updated Oct 7, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

19%

Earnings coverage leaves room for noise.

Cash payout

16%

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

2026-10-06 → 2026-10-07

Price

+2.3%

$416.17 → $425.81

Price rose 2.3% since the prior snapshot.

Why Now?

Valero Energy Corporation is trading near its historical overvaluation band.

Current yield 1.1% vs historical max 6.2% (18% of maximum).

14 consecutive years without a dividend cut.

Conservative payout ratio of 19%.

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

$114

Year 10 Income

$166

Yield on Cost

1.68%

Total Income

$1,384

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

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More research

Full price history & technical analysis

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Fundamentals, valuation & analyst ratings

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Moat rating & analyst fair value

Morningstar ↗

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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$425.81
Annual Dividend$4.73
Current Yield1.11%
Yield — Max (10Y)6.19%
Yield — Min (10Y)2.29%
Undervalued Below$67.03
Overvalued Above$179.15
Payout Ratio19.42%
CAGR Dividend 5Y2.9%
CAGR Dividend 10Y10.3%
Years No Cut14y

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14
consecutive years of dividend growth