This morning, trading was muted to kick off a week chock full of significant data releases. Market watchers can expect key housing, labor market, and inflation data starting Tuesday with the Job Openings and Labor Turnover Survey release for February. We’ll get a clearer picture of strength in the housing market following record price growth in 2021 with January’s reading of the S&P Case-Shiller National Home Price Index, also slated for tomorrow.
Today we’re highlighting a name poised to capture the lion’s share as global demand for renewable fuels escalates.
The world’s largest independent petroleum refiner and the second-largest producer of renewable fuels, Valero Energy (VLO) is poised to gain on escalating global demand for refining and increasing margins.
The company’s products include gasoline and kerosene, diesel oil, jet fuel, lubricating oils, as well as non-fuel petroleum derivatives like asphalt. Its Diamond Green Diesel joint venture is the world’s second-largest producer of sustainable renewable diesel, which gives the company a degree of protection from pricing and political pressures.
VLO’s share price has risen 46% since hitting its bottom in August last year, thanks to support from rising earnings and revenues. Most recently, Q4 revenues jumped 116% year-over-year, passing the $28.6 billion forecast to hit $35.9 billion. Adjusted earnings came in at $2.47 per share, the third quarter in a row of EPS profits and well above the year-ago quarter’s $1.06 EPS loss.
Valero rewarded shareholders with $401 million in dividends for Q4 and $1.6 billion for 2021, holding true to its nine-year history of increasing its dividend. For the full year, the payout was a sustainable 50% of net cash flow from operations. VLO’s current dividend payment of 98 cents per common share annualizes to $3.92 and gives a 4.5% yield.
Where to invest $1,000 right now...
Before you consider buying Valero, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not Valero.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
Click here to watch his presentation, and decide for yourself...
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
Click here to find out the name and ticker of Keith's #1 pick...
