I'm now looking for a third energy sector representative for my new Ivy portfolio.

That energy sector includes six industries all related to bringing oil and gas to market. They are: drilling, exploration and production (E&P), equipment and services, integrated, midstream, refining & marketing.  (Those six oily and gassy enterprises.)

Today I'm reviewing a large-cap oil and gas refining & marketing company named Valero Energy Corp. Its trading ticker symbol is VLO.

Valero Energy is the largest independent refiner in the United States. It operates 14 refineries with a total throughput capacity of 3.1 million barrels a day in the United States, Canada, and the United Kingdom. Valero also produces 1.3 billion gallons of ethanol a year, and it owns a 68% interest, including the general partner interest, in Valero Energy Partners.

The company is involved in oil and gas refining, marketing, and bulk selling activities. It produces conventional and premium gasoline, gasoline meeting the specifications of the California Air Resources Board (CARB), diesel fuels, low-sulfur and ultra-low-sulfur diesel fuels, CARB diesel, other distillates, jet fuels, asphalt, petrochemicals, lubricants, and other refined petroleum products.

It markets its refined products through a wholesale rack and bulk markets; and through approximately 7,400 outlets under the Valero, Diamond Shamrock, Shamrock, Ultramar, Beacon, and Texaco brand names.

Valero Energy Corporation has operations in the United States, Canada, the United Kingdom, Ireland, and internationally.

The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997.

Valero Energy Corporation was founded in 1955 and is headquartered in San Antonio, Texas.

I use three key data points to gauge the value of any dividend equity-like Valero Energy Corporation:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

VLO Price

Valero's price per share closed at $83.59 yesterday. A year ago its price was $93. So price fell  $9.41 per share last year, or over 10%.

Assuming Valero's stock trades in the range of $70 to $120 next year, Valero's recent $83.59 price could rise by  $6.41 and go to $90.00 by mid-February, 2020.

VLO Dividends

Valero's most recent Quarterly dividend is $0.90 payable March 5th.

That quarterly dividend equates to a  $3.60 annual payout and a yield of 4.3% at yesterday's $83.59 closing price.

Gains For VLO?

Adding the $3.60 annual estimated dividend to my $6.41 Valero estimated price upside shows a $10.01potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we put a little over $1,000.00 today at the $83.59 recent stock price would buy us 12 Valero Energy Corporation.

A $10 broker fee paid half at purchase and half at sale costs $0.83 per share.

Subtract that $0.83 brokerage cost from the estimated $10.01 gross annual gain leaves a net gain of $9.18 X12 shares

= $110.16  or a 11% net gain on a $1,003.08 investment.

Therefore, Valero Energy Corporation whose trading ticker symbol is VLO now shows a possible net gain of 11% including that 4.3% dividend yield.

Twenty-one brokers cover this stock:

Eight say 'buy' VLO

Eight say VLO will 'outperform' peers.

Five say 'hold' your VLO shares.

Therefore, you can look at Valero Energy Corporation and see it has made money, is making money, and could throw a net gain of 11% including that 4.3% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to determine if Valero Energy Corporation is worth your time and money.