Delek US Raises Quarterly Dividend 17.7% to $0.30

Delek US Holdings raised its quarterly dividend to $0.30 a share from $0.255, a 17.7% increase. The shares trade ex-dividend on November 10, 2026, and the payment is scheduled for November 18, 2026. The new rate equals an annual dividend of $1.20 a share.

Why the dividend changed

The increase follows an improvement in Delek’s refining operations and earnings. Management said its second-quarter performance demonstrated progress in “strengthening Delek’s free cash flow profile,” supported by refinery reliability, stronger margins and its Enterprise Optimization Plan. Delek also said it was maintaining a focus on disciplined capital allocation and initiatives intended to increase shareholder value. Delek’s second-quarter results provide the operating context for the higher distribution, although the company did not identify one factor as the sole reason for the increase.

Delek reported second-quarter net income of $169.5 million and adjusted EBITDA of $638.7 million. Excluding the renewable volume obligation adjustment, adjusted EBITDA was $490.1 million. The refining segment benefited from stronger crack spreads, improved performance at the Big Spring refinery and limited turnaround work. Management said no additional refinery turnarounds were planned for the remainder of 2026, leaving the system positioned to operate without another scheduled major outage. The results release also said Delek Logistics was positioned to meet its annual EBITDA guidance of $520 million to $560 million.

The balance-sheet and regulatory backdrop also improved. Delek refinanced portions of its capital structure, extending maturities and reducing interest expense. Its quarterly filing said the company remained focused on free-cash-flow improvements through the optimization program and on increasing the economic separation between Delek and Delek Logistics. Delek’s Form 10-Q details those measures. The company later said federal small-refinery exemptions would allow more capital to be deployed in its refineries, reducing a source of compliance pressure on the business. Delek’s exemption announcement provides that regulatory context.

Dividend track record

The increase ends an extended run of unchanged quarterly payments. Delek paid $0.255 on eight consecutive ex-dividend dates from November 12, 2024, through August 3, 2026. Moving to $0.30 therefore represents a step change rather than the continuation of small quarterly adjustments.

The longer history is uneven. Delek distributed $0.93 a share across three payments in 2020 and $0.61 across three payments in 2022, when the annual total was cut 34.4%. The total then rose 51.6% to $0.93 in 2023, increased 8.6% to $1.01 in 2024 and advanced 1.5% to $1.02 in 2025. Delek now has three consecutive years of dividend growth, but its five-year record remains a 3.8% annual decline. The pattern shows a recovery from the 2022 reduction rather than an uninterrupted record of compounding.

Is the dividend covered?

Delek’s earnings payout ratio is 28%. That indicates current earnings cover the dividend with a meaningful buffer, although refinery profits remain exposed to crack spreads, crude differentials, operating reliability and regulatory costs.

SmarterDividends gives the dividend a safety score of 62 and a grade of C, classified as borderline within the 50-65 range. The grade means the available evidence is mixed: the earnings payout is manageable, but the cyclical business model and record of a past reduction keep the assessment below the stronger safety categories.

Yield and valuation

At a share price of $73.57, Delek’s forward yield is 1.63%. That is below the Energy sector median forward yield of 3.89%. The shares have recorded a 90.3% gain over one year, which has reduced the income yield relative to the stock price. At the new rate, 100 shares produce $120.00 of annual dividend income.

SmarterDividends estimates fair value at $24.66 and classifies the shares as overvalued, with 66% downside to that estimate. The valuation gap is separate from dividend coverage: the 28% earnings payout ratio addresses the capacity to fund the distribution, while the 1.63% yield and fair-value estimate describe the income and valuation available at the current share price.

What to watch

The immediate dates are November 10, 2026, when the shares trade ex-dividend, and November 18, 2026, when the $0.30 payment is scheduled. The next quarterly report will provide the first operating update after the increase. Relevant items include refinery utilization, crack spreads, Big Spring reliability, progress under the Enterprise Optimization Plan and Delek Logistics’ guidance.

Capital structure and regulatory developments also remain relevant. Delek announced the pricing of $400 million of convertible senior notes in September 2026, adding another element to its financing and capital-allocation framework. That transaction is listed on Delek’s investor-relations site. Investors can also track how small-refinery exemptions affect compliance costs and how management balances refinery investment, debt obligations and cash distributions.