HOUSTON - Phillips 66 (NYSE: PSX), a major player in the downstream energy sector with a market capitalization of $39.58 billion, announced a dividend increase for its shareholders on Monday. The company’s board of directors declared a quarterly dividend of $1.20 per share on common stock, marking a $0.05 rise from the previous dividend. According to InvestingPro analysis, the stock currently appears undervalued compared to its Fair Value.
The new dividend is scheduled to be paid on June 2, 2025, to stockholders recorded as of May 19, 2025. With this increase, Phillips 66 now offers a notable 4.64% dividend yield, supported by a 9.52% dividend growth rate over the last twelve months. This increment reflects Phillips 66’s continued strategy to deliver shareholder value, as stated by Mark Lashier, chairman and CEO of the company.
According to Lashier, Phillips 66’s disciplined capital allocation and robust cash flow generation allow the company to return over 50 percent of its net operating cash flow to investors. He highlighted the company’s consistent performance since its inception in 2012, with the annual dividend experiencing a 15 percent compound annual growth rate.
Phillips 66, headquartered in Houston, operates a diversified portfolio that spans Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. The company emphasizes its commitment to safety, reliability, and sustainability, with a focus on a lower-carbon future. With annual revenues of $143.15 billion and a FAIR Financial Health Score from InvestingPro, the company maintains a solid position in the energy sector.
The information for this article is based on a press release statement from Phillips 66.
In other recent news, Phillips 66 has been actively engaging with its shareholders ahead of its Annual Meeting in May 2025, urging support for its board nominees. The company has highlighted its track record of returning over $43 billion to shareholders since 2012 and its strategic divestment of $3.5 billion in non-core assets. Meanwhile, Elliott Investment Management, a significant shareholder, has expressed dissatisfaction with Phillips 66’s strategic direction, citing a third-party survey indicating investor concerns over the company’s performance and structure. Elliott has proposed a "Streamline 66" plan and nominated new board candidates, including Stacy Nieuwoudt, to drive strategic changes. In response, Phillips 66 has criticized Elliott’s nominees, pointing out potential conflicts of interest, particularly with Gregory J. Goff’s undisclosed ties to a competitor. Analyst firm TD Cowen has maintained a Buy rating on Phillips 66 but reduced its price target to $127, citing expected shortfalls in first-quarter 2025 EBITDA. The firm also noted potential risks related to the company’s chemical segment due to US/China tariffs. As the shareholder vote approaches, both Phillips 66 and Elliott continue to advocate for their respective board nominees and strategic visions.
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