BRENTWOOD, Tenn. - Delek US Holdings (NYSE:DK), Inc., a diversified downstream energy company, announced a slight increase in its regular quarterly dividend. The Board of Directors has approved a $0.005 per share increase, bringing the dividend to $0.25 per share. This dividend is scheduled to be paid on May 24, 2024, to shareholders who are on record as of May 17, 2024.
This decision by Delek US Holdings reflects a continuation of the company's practice of returning value to its shareholders. The company operates in various sectors of the energy industry, including petroleum refining, logistics, and convenience store retailing. Its refining assets have a significant combined crude throughput capacity, and the company also holds an interest in a major long-haul crude oil pipeline.
In addition to its refining and pipeline operations, Delek US Holdings has a substantial stake in Delek Logistics Partners, LP (NYSE: NYSE:DKL), a growth-oriented master limited partnership that manages midstream energy infrastructure assets. As of March 31, 2024, Delek US Holdings and its subsidiaries owned approximately 72.7% of Delek Logistics Partners, LP, including the general partner interest.
InvestingPro Insights
Delek US Holdings, Inc. has recently made headlines with its dividend increase, signaling confidence in its financial stability and commitment to shareholder returns. In light of this news, some key metrics from InvestingPro provide additional context to investors considering the company's stock.
The company's market capitalization stands at $1.72 billion, reflecting its position in the market. Despite a challenging environment, Delek's price-to-earnings (P/E) ratio is currently 55.6 on an adjusted basis for the last twelve months as of Q4 2023, which indicates a high valuation relative to earnings. This could suggest that investors are expecting future growth or that the stock is priced optimistically.
InvestingPro Tips indicate that Delek's stock is currently in oversold territory according to the Relative Strength Index (RSI), which may interest investors looking for potential buying opportunities. Additionally, while analysts have revised earnings downwards for the upcoming period, they predict the company will be profitable this year.
It's also noteworthy that Delek's dividend yield as of the end of 2023 stands at a substantial 3.66%, coupled with a noteworthy dividend growth of 16.67% over the last twelve months. This could make Delek an attractive option for income-focused investors.
For those seeking a deeper analysis, InvestingPro offers more comprehensive insights. With an additional 25 InvestingPro Tips available for Delek US Holdings, investors can gain a more nuanced understanding of the company's financial health and future prospects. To access these insights and enhance your investment strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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