Valero Energy is one of the top dividend stocks I think are worth considering today. Dividend stocks are a great way to hedge your portfolio as they provide both steady income and cushion against market risks. A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. If you’re a long term investor, these high-performing top dividend stocks can boost your monthly portfolio income.
Valero Energy Corporation (NYSE:VLO)
Valero Energy Corporation operates as an independent petroleum refining and ethanol producing company in the United States, Canada, the United Kingdom, and Ireland. Formed in 1955, and now led by CEO Joseph Gorder, the company employs 9,996 people and with the company’s market cap sitting at USD $40.46B, it falls under the large-cap category.
VLO has a wholesome dividend yield of 3.46% and is paying out 30.45% of profits as dividends , and analysts are expecting a 37.49% payout ratio in the next three years. While there’s been some level of instability in the yield, VLO has overall increased DPS over a 10 year period from US$0.48 to US$3.20. More on Valero Energy here.
Ford Motor Company (NYSE:F)
Ford Motor Company designs, manufactures, markets, and services a range of Ford cars, trucks, sport utility vehicles, and electrified vehicles; and Lincoln luxury vehicles worldwide. Founded in 1903, and now led by CEO James Hackett, the company currently employs 202,000 people and with the company’s market cap sitting at USD $42.51B, it falls under the large-cap category.
F has a great dividend yield of 6.82% and pays out 31.37% of its profit as dividends , and analysts are expecting the payout ratio in three years to hit 38.69%. While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from US$0 to US$0.73. Ford Motor’s earnings per share growth of 65.41% outpaced the us auto industry’s 31.42% average growth rate over the last year. Interested in Ford Motor? Find out more here.
The Southern Company (NYSE:SO)
The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. Formed in 1945, and currently lead by Thomas Fanning, the company size now stands at 31,344 people and with the market cap of USD $44.43B, it falls under the large-cap group.
SO has a large dividend yield of 5.26% with a generous payout ratio. . In the case of SO, they have increased their dividend per share from US$1.61 to US$2.32 so in the past 10 years. They have been dependable too, not missing a single payment in this time. Analysts are expecting an impressive triple digit earnings growth over the next three years. Interested in Southern? Find out more here.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.