Do Analysts Expect Phillips 66’s Dividends to Surge?
Phillips 66’s dividends
Phillips 66 (PSX) dividend payments have been growing steadily for the past few years. In 3Q17, Phillips 66 made a dividend payment of $0.70 per share, which represents 25% growth from 3Q15. The dividend was announced on July 12, 2017, and paid on September 1, 2017.
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Wall Street analysts anticipate Phillips 66’s dividend payment to stay stable in 4Q17 at $0.70 per share, likely because PSX has recently stepped up its dividend payment. From its past-two-year history, we can see that PSX has been increasing its dividend payments in the second quarter of every year.
Phillips 66’s dividend yield
Phillips 66’s current dividend yield now stands at 3.3%, up from the 2.8% we saw in 3Q15. The improvement in yield is likely due to the steeper growth in dividends compared to the rise in Phillips 66 stock price during the same period.
Peer dividend yields
Over the same period (since 3Q15), Andeavor’s (ANDV) dividend yield grew from 1.8% to 2.3%, while Marathon Petroleum’s (MPC) dividend yield improved from 2.3% to 3.0%. By comparison, the SPDR S&P 500 ETF’s (SPY) dividend yield rose from 1.8% in 3Q15 to the current level of 1.9%.
Valero Energy’s (VLO) dividend yield rose more sharply, from 2.4% to 4.0%, while Delek US Holdings’ (DK) and HollyFrontier’s (HFC) dividend yields soared from 1.7% and 2.7%, respectively, in 3Q15, to their current levels of 2.3% and 4.1%, respectively.