is planning a 2-for-1 stock split of its surging shares and at the same time intends to boost its quarterly dividend by 20%.
The company expects to pay a post-split dividend of 6 cents on its common shares, equivalent to 12 cents on a presplit basis. Valero had just raised its dividend to 10 cents from 8 cents in April. If Valero hadn't increased its distribution, the post-split payout would have been 5 cents.
"This proposed stock split reflects our continuing confidence that the positive earnings environment we are experiencing this year should continue well into the future," the company said in a press release Thursday.
During the last few months, shares of Valero have soared as climbing oil prices led to strong margins for the refiner. The stock has traded in a range of $35.51 to $115.12 in the last 52 weeks. As recently as mid-May, Valero's shares traded just north of $60. Earlier this month, Valero completed the acquisition of Premcor.
In recent trading, Valero's stock was down $1.02, or 0.9%, to $109.98.