Has Phillips 66’s Dividend Yield Increased?



Phillips 66’s dividend per share

Phillips 66’s (PSX) dividend payments have risen in the past few years. In the current quarter, the company will pay a dividend of $0.9 per share on June 3, 2019. The dividend was announced on May 8. Phillips 66’s second-quarter dividend payment has risen 13% compared to the second quarter of 2018.

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Phillips 66’s dividend yield

Phillips 66’s dividend yield is 4.2%. The dividend yield has risen from 2.5% in the second quarter of 2018. The growth in the yield is due to an increase in Phillips 66’s dividend payments and a decrease in its stock price during the stated period.

Phillips 66 has consistently provided returns to shareholders through dividends and share buybacks. In the first quarter, Phillips 66’s cash outflows for dividends and share repurchases were ~$364 million and ~$344 million, respectively. Since May 2012, Phillips 66’s dividends have grown at a compound annual growth rate of 25%. The company has reduced 31% of its initial outstanding shares through repurchases.

Phillips 66 expects shareholders’ returns to continue in upcoming quarters. Greg Garland, Phillips 66’s chairman and CEO, in its first-quarter earnings call, said, “Disciplined capital allocation is fundamental to our strategy and we’ll continue to return capital to our shareholders. We expect to deliver another double-digit dividend increase this year. We continue to buy back shares when they trade below intrinsic value; we’re buying today.”

Peers’ dividend yield

Only Valero Energy (VLO) has a dividend yield that’s higher than Phillips 66. Currently, Valero Energy’s yield is 4.3%. Marathon Petroleum’s (MPC) yield is 4.1%. HollyFrontier (HFC), PBF Energy (PBF), and Delek US Holdings (DK) have lower yields at 3.1%, 3.9%, and 3.1%, respectively.


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