Valero's Crash Is A Blessing For Dividend Investors (NYSE:VLO)
Did you ever look at a company's steady and high dividend payments to its investors and think 'I want some of that as well'? Well, I do. Valero (VLO) is one of the stocks that have tremendous shareholder commitment, which they embrace through maintaining a solid balance sheet, effective business operations, and a steady and high payout ratio. The bad news, or in this case the good news for new investors, is that the company has been hit severely by the current COVID-19 pandemic. The stock is down roughly 40% year-to-date, which is offering a tremendous buying opportunity. I took a look and will tell you why I am adding this one as soon as possible. Bear with me!
Source: Valero (Old & New Logo)
Cyclical And Profitable
Let's start this article by mentioning a few basic company characteristics. The founded in 1980 and San Antonio TX-based Valero Energy Corporation is an energy company focused on oil and gas refining and marketing. Valero has a $23.5 billion market cap and is an S&P 500 member. With a market cap $7 billion below Phillips 66 (PSX), the company is the second-largest operator in its industry, even though the distance to number three, Marathon Petroleum (MPC) is just $300 million.
Valero generates roughly 70% of its sales inside of the United States, followed by 12% in the United Kingdom (and Ireland), and 18% in other countries. Across all countries, Valero generated almost $103 billion in sales in the full-year of 2019. Most of this was generated in the company....