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Phillips 66 Rewards Investors With Quarterly Dividend Hike

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Phillips 66 (PSX - Free Report) recently announced an approval from the board of directors to hike its quarterly dividend payout.

The new dividend of 90 cents per share is 12.5% higher than the preceding dividend of 80 cents. The raised dividend is likely to be paid on Jun 3, to stockholders of record as of May 20. Following the rise in dividend payment, the company’s dividend yield stands at 4.1%, almost in line with the industry it belongs to.

The dividend hike reflects the company’s strong focus on returning cash to shareholders. The leading refiner added that since its inception in 2012, the company has managed to hike quarterly dividends nine times. This has helped the company’s dividend see a compound annual growth rate of 25% over the period.

Phillips 66 added that through disciplined allocation of capital, it is systematically returning capital to common stock holders while maintaining investments in growth projects.

Headquartered in Houston, TX, Phillips 66 is engaged in midstream and chemicals businesses, apart from refining operations. Notably, the company recently reported better-than-expected earnings, courtesy of contributions from pipeline transportation business.

Phillips 66 currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space are Enterprise Products Partners LP (EPD - Free Report) , Hess Corporation (HES - Free Report) and Anadarko Petroleum Corporation (APC - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.       

Enterprise Products has average positive earnings surprise of 17% for the past four quarters.

Hess is likely to witness earnings growth of 116.2% through 2019.

Anadarko Petroleum has average positive earnings surprise of 6.6% for the last four quarters.

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