Oil refiner Phillips 66 ( PSX ) has increased its
quarterly common stock dividend by 25% to 31.25 cents per share.
The new dividend will be paid on Mar 1, 2013 to shareholders of
record as of Feb 18. The company paid a dividend of 25 cents during
the previous quarter.CALUMET SPECLTY (CLMT): Free Stock Analysis
ReportCONOCOPHILLIPS (COP): Free Stock Analysis
ReportGLOBAL PARTNERS (GLP): Free Stock Analysis
ReportPHILLIPS 66 (PSX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment
The strength of Phillips 66's business model reflects the
company's commitment towards returning value to shareholders along
with its strong cash generation capabilities.
Phillips 66 has a good capital deployment policy through share
repurchase and payment of dividends. During the fourth quarter of
2012, the company returned more than $400 million to shareholders
through $157 million in dividend payments and $245 million in share
repurchases. The board of directors also approved an additional
share repurchase program of $1 billion, increasing the total
repurchase program to $2 billion.
We believe that the increase in dividend and share repurchase
programs will boost investor confidence in the stock, thereby
driving share value.
The company currently retains a Zacks Rank #2 (Buy), implying that
it is expected to outperform the broader U.S. equity market over
the next one to three months.
Phillips 66, an independent publicly traded company, was formed
after the spin-off of the refining/sales business of
ConocoPhillips ( COP ) in May 2012. The
move has resulted in the creation of the largest refining company
in the U.S. and the largest exploration and production player based
on oil and gas reserves.
The new downstream company, Phillips 66, is headquartered in
Houston, Texas. In addition to the refining, marketing and
transportation businesses, Phillips 66 has emerged as an integrated
downstream company with most of the Midstream and Chemicals
segments, as well as power generation and certain technology
operations included in the Emerging Businesses segment.
In addition to Phillips 66, there are certain other energy
operators like Calumet Specialty Products Partners
L.P. ( CLMT ) and
Global Partners L.P. ( GLP ) that offer value
and are worth buying now. Both these firms sport a Zacks Rank #1