Top 100 firm Phillips 66 (PSX) raises dividend by 11%

Phillips 66’s (NYSE:PSX) dividend was increased by 11%.  Its overall yield is 3.57%. The firm started paying a dividend in 2012.

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).

top-100

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.

Date Quarterly Dividend
5/16/2017 0.7
2/16/2017 0.63
11/15/2016 0.63
8/16/2016 0.63
5/16/2016 0.63
2/11/2016 0.56
11/10/2015 0.56
8/13/2015 0.56
5/14/2015 0.56
2/12/2015 0.5
11/12/2014 0.5
8/13/2014 0.5
5/15/2014 0.5
2/13/2014 0.39
11/12/2013 0.39
8/14/2013 0.313
5/16/2013 0.313
2/19/2013 0.313
10/11/2012 0.25
7/19/2012 0.2

Analysis of Phillips 66 is based upon our five key criteria for the Top 100 list, which include;

Category Value Score
Dividend Yield 3.57% 129
Dividend Growth (5 year avg) 55 16
Forward P/E 12.35 79
S&P Financial Rating BBB+ 167
Beta 1.25 455
Total Score 846
% 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 %
3.57% 13 55 177.65 0.45 0.20 0.50 1.67% 3.57%

Positives;

  • 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.

Negatives;

  • Phillips 66 maintains a beta of 1.25, higher than the average company.

Analysis Data:

2016 2015 2014 2013 2012
Earnings per Share 2.92 7.73 7.1 5.92 6.48
Annual Dividend 2.45 2.18 1.89 1.33 0.45
Payout Ratio 83.90 28.20% 26.62% 22.47% 6.94%
Earnings per Share 2017 (projected) 4.25
Dividend 2.73
Payout Ratio 64.24%

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

Phillips 66 Dividend Yield Chart (Click to enlarge)
psx

Chart Explanation:  Dividend growth stocks may be viewed undervalued when the current yield is above historical readings for the past 5 years. 

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