Phillips 66 is a large U.S. based energy manufacturing and refining firm. The energy company has operations in refining, chemicals, and midstream pipeline operations. Midstream operations include gathering, processing, and transporting natural gas liquids. The firm also exports liquefied petroleum gas (LPG). Chemical operations include the marketing and manufacturing of ethylene and other products. The large Refining segment refines crude oil into gasoline through 13 major refineries located across the U.S. Phillips 66 was founded in 1875 and is located in Houston, Texas.
Phillips 66 has maintained a three-year growth rate of dividends of 13 percent. Phillips 66 currently ranks 5th in dividend yield within the large cap basic materials, oil & gas refining and marketing category. The quarterly dividend for the June payment will be $0.70 versus the prior year rate of $0.63 per share. Phillips 66 is a member of our Top 100 Dividend Stocks. (see below).
The dividend will be paid at the new higher rate on June 1, 2017, to shareholders of record at close of business on May 18, 2017. Phillips 66 is currently priced at $78.54. Listed in the table below are the quarterly dividend payments since 2012.
Analysis of Phillips 66 is based upon our five key criteria for the Top 100 list, which include;
|Dividend Growth (5 year avg)||55||16|
|S&P Financial Rating||BBB+||167|
|% Yield||3 Year Div. Growth Rate||5 Year Div. Growth Rate||SPS 2017||P/S Ratio||10 yr P/S Low||10 yr P/S High||5 yr low Yield %||5 yr max Yield %|
- Phillips 66 maintains an investment grade rating of BBB+.
- Phillips 66’s current dividend yield (3.57%) is at the top of its five-year average historical dividend yield.
- Phillips 66’s dividend yield is above that of the S&P 500 Index.
- Phillips 66 has paid out a dividend consecutively for the past 5 years.
- Phillips 66 maintains a low forward price/earnings ratio of just above 12.
- Phillips 66 maintains a beta of 1.25, higher than the average company.
|Earnings per Share||2.92||7.73||7.1||5.92||6.48|
|Earnings per Share 2017 (projected)||4.25|
Based on the firm’s stellar financial credit rating, consistent dividend growth and high dividend over 3%, Phillips 66 qualifies as one of our Top 100 Dividend Stocks.
Chart Explanation: Dividend growth stocks may be viewed undervalued when the current yield is above historical readings for the past 5 years.