VLO Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. Regarding Valero Energy Corp, the DDM model, as implemented by StockNews, implies a positive return of 11.68% relative to its current price. Digging deeper, the aspects of Valero Energy Corp's dividend discount model that we found most interesting were:

• In comparison to stocks we observe that provide shareholders with a dividend, VLO offers a dividend yield in the top 9.04000000000001% of stocks in our set.
• With a market cap of roughly $23 billion, VLO is in the large-sized market cap class; here, it has a lower equity discount rate than merely 10.26% of stocks.
• A stock's beta generally indicates its volatility relative to the broader equity market; as for VLO, approximately 8.86% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

VLO Dividends vs. Peers