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High Yield: Diversified Refiner Phillips 66 A Good Replacement for Broad Consumer Staples Exposure

publication date: Jun 28, 2022
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Image Source: Phillips 66 Investor Update May 2022. 

Phillips 66 is a top-notch operator in the downstream space with impressive refining and petrochemical assets supported by various midstream operations. Its investment-grade credit rating (A3/BBB+), with stable outlooks, better enables Phillips 66 to tap capital markets at attractive rates, something that we especially like when considering new ideas in the high yield dividend space. A growing global middle class and a growing global population supports Phillip 66's longer term outlook for refined product demand. We like the company as a high yield dividend consideration.


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