) 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 21, 2013 (please note:
this date was changed from the Feb 18 date originally reported).
The company paid a dividend of 25 cents during the previous
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
) 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
In addition to Phillips 66, there are certain other energy
Calumet Specialty Products Partners L.P.
Global Partners L.P.
() that offer value and are worth buying now. Both these firms
sport a Zacks Rank #1 (Strong Buy).
(NOTE: We are re-publishing this article to correct an
error. The original version, published Feb 14, 2013, should no
longer be relied upon.)
PHILLIPS 66 (PSX): Free Stock Analysis Report
To read this article on Zacks.com click here.