Valero increases regular cash dividend to 27.5c from 25c The Board of Directors of Valero has approved an increase in the company's regular quarterly cash dividend on common stock from 25c per share to 27.5, effective with the quarterly dividend the Board has declared to be payable on September 17 to holders of record at the close of business on August 20. The increase in the dividend raises the annualized cash dividend rate on Valero's common stock to $1.10 per share. The company said, "This is Valero's second increase in the regular cash dividend during 2014, and is a 37.5% increase since the start of 2013. This increase reflects our belief in the earnings power of our business and our continued commitment to return cash to stockholders."
Valero downgraded to Underperform from Neutral at BofA/Merrill BofA/Merill downgraded Valero to Underperform and raised its price target to $68 from $64. The firm believes the Refining sector has reverted to a trading sector and downgrade shares ahead of a seasonal slow-down in demand and a deteriorating macro backdrop.