5 Best Energy Dividend Stocks to Buy Now

In this article, we discuss 5 best energy dividend stocks to buy now. If you want to read our detailed analysis of the energy sector’s performance and other energy dividend stocks, go directly to read 10 Best Energy Dividend Stocks to Buy Now. 

5. Valero Energy Corporation (NYSE:VLO)

Dividend Yield as of October 23: 3.07%

Valero Energy Corporation (NYSE:VLO) is an American petroleum refineries company that also specializes in petrochemical products and power. In Q2 2022, the company reported an operating cash flow of $5.8 billion, compared with $1.4 billion during the same period last year. The company’s free cash flow jumped to $5.4 billion, from $986 million in the prior-year period.

Though Valero Energy Corporation (NYSE:VLO) has not raised its dividends since 2019, the company maintained its payouts during these years. It currently pays a quarterly dividend of $0.98 per share for a dividend yield of 3.07%, as of October 23. The company has a healthy payout ratio of 22.59%.

As Jefferies started covering major oil and gas stocks, the firm initiated its coverage on Valero Energy Corporation (NYSE:VLO) this October with a Buy rating and a $147 price target.

At the end of June 2022, 43 hedge funds in Insider Monkey’s database reported owning stakes in Valero Energy Corporation (NYSE:VLO), down from 47 in the previous quarter. These stakes have a total value of nearly $760 million. With roughly 2 million shares in the company, Millennium Management was its largest stakeholder in Q2.