Phillips 66: 3.7% Dividend Yield, Growing At 18% CAGR

Dec. 05, 2022 1:33 PM ETPhillips 66 (PSX) StockPSX8 Comments

Summary

  • Phillips 66 has a capital allocation policy that's split between dividends and buybacks.
  • Presently, Phillips 66's dividend yield is around 3.7%. However, its dividend continues to increase as the buybacks continue to take place.
  • As new CEO Mark Lashier takes the reigns of Phillips 66, it also laid out at its Investor Day that increasing cash flows are high up on the priority list.
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A man is holding a bag with oil barrels. Offer the purchase of oil and futures at competitive price, discounts and bonuses. Deferment of payment. Negative energy prices. Lack of storage space

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Investment Thesis

Phillips 66 (NYSE:PSX) hasn't quite delivered against its refining peers. Indeed, its share price hasn't really moved off the $90 to $100 per share level for approximately seven years.

Now that the Phillips 66 new CEO, Mark Lashier, has been

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This article was written by

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.

With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months.

Through his 10+ years analyzing countless companies, Michael has accumulated outstanding professional experience in tech and energy and a following of over 40K on Seeking Alpha.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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