VLO - If You Like Buybacks (And Dividends) You'll Love Valero

2024-05-07 09:34:36 ET

Summary

• Apple's shares soared by more than 6% after announcing expectations of growth in the next quarter and $110 billion in additional buybacks.
• Valero Energy has outperformed Apple in terms of share buybacks and shareholder wealth generation, with a 120% return on shares over the past five years.
• Valero's focus on renewable energy projects and its strong balance sheet make it a compelling long-term investment despite anticipated earnings declines.
• The company also benefits from ongoing supply and demand tailwinds.

Introduction

Apple ( AAPL ) is having somewhat of a hard time. Five of its past six quarters had negative sales growth , dragged down by its flagship product, the iPhone, which is pressured by headwinds, including stronger competition from Chinese producers.

However, its shares soared by more than 6% after the recent earnings release, as the producer noted that it expects the next quarter to see growth.

It also revealed $110 billion in additional buybacks!

To put things in perspective, at current prices, that's enough to buy every single share of the Boeing Company ( BA ). ...

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