) has increased its quarterly common stock dividend by 25% to
31.25 cents per share ($1.25 per share annualized). The new
dividend will be paid in the first quarter of 2013. The board of
directors also approved a $1.0 billion share repurchase program
in addition to that announced in the third quarter of 2012.
CONOCOPHILLIPS (COP): Free Stock Analysis
PHILLIPS 66 (PSX): Free Stock Analysis Report
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Phillips 66's latest payout hike marks the second dividend
increase since its inception in May 2012. The company paid a
dividend of 25 cents during the previous quarter. The company
expects to use its operating cash flows to fund the buyback
The strength of Phillips 66's business model reflects its
commitment towards returning value to shareholders with its
strong cash generation capabilities.
Phillips 66 has a good capital deployment policy through share
repurchase and payment of dividends. During the third quarter of
2012, the company's board of directors approved a share
repurchase program of $1.0 billion.
As of September 30, 2012, company had cash and cash equivalents
of $4.4 billion.
We believe that the increase in dividend and share repurchase
programs will boost investor confidence in the stock, thereby
driving share value.
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. (with a capacity of 2.4
million barrels per day) 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 also includes most of the
Midstream and Chemicals businesses, as well as power generation
and certain technology operations included in the Emerging
Businesses segment, to create an integrated downstream company.
Phillips 66 currently retains a Zacks #2 Rank, which translates
into a short-term Buy rating.