3 Consistent Moneymakers: Kimberly-Clark, Southern, and Delek Logistics Boost Dividends and Yields

Kimberly-Clark, Southern, and Delek Logistics have consistently raised their dividends for years, offering dividend yields of up to 10%. Kimberly-Clark has increased its dividends every year for 53 years, while Southern has raised its dividends consecutively for 24 years. Delek Logistics has also consistently raised its payouts, offering a dividend yield of 10.5%.

Delek US Holdings, Inc. (DK), an integrated downstream energy refiner and logistics operator, has been the subject of a bullish thesis by LongTermValue Research [1]. The company's stock was trading at $24.47 as of August 22nd, with a trailing P/E of 4.61 and a forward P/E of 20.33, according to Yahoo Finance.

Delek US Holdings operates four inland refineries across Texas, Arkansas, and Louisiana, and holds a majority stake in Delek Logistics (DKL), which manages over 1,500 miles of pipelines and terminals. DKL pays a 10% dividend, contributing significantly to DK's overall payout. The ownership in DKL is valued at $1.46 billion against an enterprise value of $1.8 billion, implying a stub EV of only $343 million. Management estimates mid-cycle EBITDA at $343–493 million, including cost savings, while independent estimates suggest $333 million excluding them.

The company also has outstanding petitions for small-refinery exemptions (SREs) covering 2016–2024, worth up to $1.8 billion. Even a 50% relief would mean $900 million in payments, nearly triple the current stub value. Court filings indicate the EPA is preparing to issue decisions soon, presenting a major catalyst.

Delek US Holdings generates ~$140 million in mid-cycle free cash flow annually after DKL distributions, with management suggesting this could reach $300 million including cost reductions. On a base case without SREs, fair value by Q4 2026 is estimated at $42.2 per share, or 70% upside, based on a 12% FCF yield and 3.5x mid-cycle EBITDA, versus peers at 6x. Over the next six quarters, DK is expected to reduce debt and repurchase shares, driving leverage below 1.0x. If SRE relief materializes, fair value rises to $58, or +135%, with additional upside from debt reduction, buybacks, and higher dividends.

Delek US Holdings is part of a group of companies known for their consistent dividend increases. Kimberly-Clark, Southern, and Delek Logistics have consistently raised their dividends for years, offering dividend yields of up to 10%. Kimberly-Clark has increased its dividends every year for 53 years, while Southern has raised its consecutively for 24 years. Delek Logistics offers a dividend yield of 10.5%, contributing to DK's overall payout.

The combination of undervaluation, structural simplification, and regulatory catalysts makes Delek US Holdings a highly compelling special situation. While the company's stock has appreciated approximately by 36% since May 2025 [1], it still offers significant upside potential.

References:
[1] https://finance.yahoo.com/news/delek-us-holdings-inc-dk-135553933.html