Dividend Growth Newsletter portfolio holding Phillips 66 (click ticker for report: ) announced on Tuesday that it would raise its quarterly dividend 25% to $0.39 per share. This equates to an annual dividend of $1.56 per share, and an annual yield of 2.6% at current levels. We applaud the move, though we aren’t surprised, as we have long believed that the firm has excellent dividend safety and growth potential.
In our view, the longer-term fundamental story for Phillips 66 and the broader industry continues to look positive as refining capacity remains constrained and more advantaged crude flows through North American pipelines. At this time, Philips 66 remains our favorite idea in the refinery space and a holding in the portfolio of our Dividend Growth Newsletter. We expect to update our dividend report on the company soon.