The Phillips 66 Company (NYSE: PSX) is an American multinationalenergy company headquartered in Westchase, Houston, Texas. It debuted as an independentenergy company when ConocoPhillips executed a spin-off of its downstream and midstream assets. Taking its name from the 1927 "Phillips 66" trademark of ConocoPhillips predecessor Phillips Petroleum Company, Phillips 66 began trading on the New York Stock Exchange on May 1, 2012, under the ticker PSX. The company is engaged in producing natural gas liquids (NGL) and petrochemicals. The company has approximately 14,000 employees worldwide and is active in more than 65 countries. Phillips 66 is ranked No. 7 on the Fortune 500 list and No. 19 on the Fortune Global 500 list as of 2015.
This stock might be a very long-term hold. It'll take time before oil prices go back up, but with the long-term demand for refined products expected to increase, I think this stock should do well in the long term.
Upcoming dividend information: Ex-Div-Date: 11/15/16 Payment Date: 12/1/16 Dividend: $0.63 Current Price: $78.60 Annual Yield: 3.21%
Dividend Stock Spotlight: Phillips 66 (PSX) Tue, Sep 17, 2019 Crude oil, and as a result the energy sector, surged yesterday in response to attacks in Saudi Arabia which has damaged the country's oil production. Crude rose over 14% while the Energy sector (XLE) rose 3.36%. Taking a more granular look at the sector, S&P 500 stocks across the GICS Level 4 sub-industries saw varied responses to the news. Drilling in addition to Exploration and Production companies were up the most, rising 14.3% and 7% respectively, while the Refining and Marketing industry, although still higher, only rose around 14 bps. Although this sub-industry did not explode higher on this news, Phillips 66 (PSX) in particular is looking attractive. Not only is the company's 9.4 P/E below the median for the sub-industry (12.2) and sector (13.6), but PSX is also eyeing a nice technical breakout. Mid-summer and again in the past few weeks, PSX has stopped short of resistance around $105 which can be traced back to a short rally at the end of last year. in the past couple of days, it has come back up to these levels after putting in a higher low at the end of August. Even as the stock looks to breakout, at 3.5%, the current dividend yield is still near its highest level since PSX first began paying a dividend in 2012. This yield is also higher than the yield on the average S&P 500 energy stock which is currently at 3.05%. This dividend has been steadily growing at a rate of 13.8% over the past five years. The company has continued room to grow this dividend as the payout ratio is only at 28.67% and debt to equity only sits at 46.59%. For comparison, the average of these two ratios for all S&P 500 energy stocks is 73.64% and 58.4%, respectively. In other words, in addition to having technicals and valuation with potential, PSX also has a safe and sizable dividend to boot.
