Valero Energy's Q4 Earnings Boost Share Price, Dividend Increase Maintains Momentum

Valero Energy (VLO) reported Q4 2022 earnings of $30.4bn in sales, $1.1bn in net income, and $3.73 in basic EPS from continuing operations. The earnings release and recent dividend increase have maintained momentum, with a 19.42% YTD share price return and a 44.59% total shareholder return over the past year. However, the company's valuation is 71.8% below its fair value, and its dividend yield is attractive at 3.49%. The narrative fair value is $185.51, suggesting a gap that has caught investors' attention.