Today I'm reviewing a large-cap oil & gas refining & marketing firm by the name of Valero Energy Corporation. Its trading ticker symbol is VLO.

Valero Energy Corp, as a petroleum refining and marketing company, produces conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products as well as a spate of premium products.

As of December 31, 2017, the company owned 15 petroleum refineries with a combined throughput capacity of approximately 3.1 million barrels per day. 

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

It owns and operates 11 ethanol plants. The company also owns, operates, develops, and acquires crude oil, refined petroleum products pipelines, terminals, and other transportation and logistics assets.

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 or fund like Valero Energy Corporation (VLO): 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keyswill finally unlock an equity or fund in which to invest.

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

VLO Price

Valero'sprice per share was $115.14 at yesterday's market close. A year ago its price was $66.20 for a gain of $48.94 per share.  

Assuming Valero's price will trade in the range of $80 to $150 next year, that nearly $50 gain would be extraordinary. I'' peg the coming year gain at $30 totake its current $115.13 price to $145.13 by early August, 2019. 

VLO Dividends

Valero's most recent quarterly dividend was $0.80declared July 20and payable September 5th.

At that most recent quarterly pay rate, its 2018 annual dividend is calculated at $3.20yielding2.8% at yesterday's closing $115.14 price.

Gains For VLO?

Adding the $3.20 estimated annual dividend to the $30.00 year over year theoretical price gain for Valero makes a $33.20gross annual per share gain, which will be reduced by costs to trade the shares.  

A little over $1,000.00 invested today at the $115.14 recent price buys 9 Valero Energy Corporation (VLO) shares. 

A $10 broker fee paid half at purchase and half at sale costs about $1.11 per share, subtracting that $1.11 brokerage cost from the estimated $33.20 gross gain leaves a net gain of $32.09 X 9 shares = $288.81 or a 28.7% net gain on a $1036.26 investment.

Therefore, Valero Energy Corporation , whose trading ticker symbol is VLO, now shows a possible 28.7% net gain including a 2.8% dividend yield. 

Nineteen brokers cover this stock:

Seven say "buy"

Five say VLO will "outperform" its peers.

Six rate it "hold".

One says it will "underperform"

So, the analyst consensus recommendation is 2.05 or "outperform".

The price target set by those nineteen brokers is $14.50 below the $145.13 year over year price target I named. 

Y Charts has data too. Y Charts has rated VLO "attractive" for an overall "Y" rating; it has "good" for a value score, and "strong" for a Fundamental mark, and rates VLO "15.13% under" for aHistoric Valuation score based on a historic $135.67 valuation per share.

So, you could look at all those positive numbers this way, Valero Energy Corporation (VLO) has made money, is making money, and could net a 28.7%gain including a 2.8% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. Actual results remain to be seen. Results could turn out to be far higher or lower. More study is required for you to determine ifValero Energy Corporation (VLO) is worth your time and money.