Comparing distribution growth

Phillips 66 Partners (PSXP) increased its 3Q17 distribution to 64.6 cents per unit, which represents year-over-year distribution growth of 22.0%. This is 5.0% higher than its 2Q17 distributions. Since its IPO (initial public offering) in 2013, PSXP has increased its distributions for 16 consecutive quarters.

ANDX, HEP, and PBFX: Stocks Yielding Higher than 7%

The chart above shows the quarterly per-share distributions for Phillips 66 Partners, Holly Energy Partners (HEP), PBF Logistics (PBFX), and Andeavor Logistics (ANDX) over the last 11 quarters.

Andeavor Logistics raised its quarterly distribution to ~98.5 cents per unit in 3Q17, which represents year-over-year distribution growth of ~13.0%. Holly Energy Partners raised its quarterly distribution to 64.5 cents per unit in 3Q17, which represents year-over-year distribution growth of 8.4%, exceeding HEP’s distribution growth target of 8.0%.

PBF Logistics raised its quarterly distribution to $0.48 per unit in 3Q17, which represents a year-over-year increase of 9.1%.

Dividend yields

PBF Logistics is currently trading at a yield of ~9.0%. Holly Energy Partners and Andeavor Logistics are trading at yields of nearly 8.0% and 7.0%, respectively. In comparison, Phillips 66 Partners currently yields ~4.6%. The SPDR S&P 500 ETF (SPY) (SPX-INDEX) currently yields slightly less than 2.0%.

Attractive yields, along with growing distributions, make these stocks interesting for income investors.

Quarter-over-quarter growth

Although Phillips 66 Partners’ yield is the lowest among the four companies, its distribution growth is the highest. PSXP’s distributions grew at a rate of ~5.0% quarter-over-quarter over the last seven quarters.

Andeavor Logistics, which raised distributions ~4.0% every quarter in 2015 and 2016, offered a much lower growth rate in 2017. In 3Q17, its distributions increased by just 1.0% over the previous quarter.

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