10 Energy Stocks with Fat Dividends

8. Valero Energy Corporation (NYSE:VLO) 

Dividend Yield as of April 18: 4.11%

Next on our list of the Best Energy Dividend Stocks is Valero Energy Corporation (NYSE:VLO), the largest independent petroleum refiner in the world and a leading producer of low-carbon transportation fuels. The company has 15 refineries in the US, Canada, and the UK, with a total throughput capacity of approximately 3.2 million barrels per day.

Despite a tough business environment for the refining sector, Valero Energy Corporation (NYSE:VLO) topped forecasts in Q4 2024. The company posted an adjusted EPS of $0.64, far above analysts’ estimates of $0.06. The quarterly revenue of $30.76 billion also beat expectations by $733.14 million, despite being down 13.15% YoY. VLO’s refining segment reported operating income of $437 million for Q4 2024, compared to $1.6 billion for the same period in 2023. Meanwhile, the renewable diesel segment posted strong growth, reporting $170 million of operating income for the quarter, up by 102% YoY.

Despite the setbacks, Valero Energy Corporation (NYSE:VLO) returned $4.3 billion to shareholders in 2024, representing a strong payout ratio of 78%. The company increased its quarterly cash dividend by 6% in January, further demonstrating its strong commitment to shareholders and placing it among the 13 Best Natural Gas and Oil Dividend Stocks To Buy.