Some investors rely on dividends to grow their wealth, and if you’re interested in dividends, you might want to know that Phillips 66 (NYSE:PSX) is going ex-dividend in just 4 days. The ex-dividend date is important because it determines which shareholders are eligible to receive the dividend. If you buy shares on or after May 17th, you will not receive the dividend, which will be paid on June 3rd.
The next dividend payment from Phillips 66 will be US$1.15 per share, with a trailing yield of 3.2% on the current share price of US$145.60. Dividends are an important source of income for many shareholders, so it is crucial to assess whether the dividend is covered by earnings and if it is growing.
Phillips 66’s payout ratio is modest at 32% of profit, and dividends consumed 63% of the company’s free cash flow last year. This indicates that the dividend is sustainable and has a lower risk of being cut.
Earnings per share have been growing at a rate of 2.8% per annum over the last five years for Phillips 66. The company has also increased its dividend by approximately 14% a year on average over the last 10 years. This shows that dividends are rising alongside earnings, which is a positive sign for shareholders.
While Phillips 66 has been able to maintain its dividend payments, there are some risks that investors should be aware of. It would take more convincing evidence to fully endorse Phillips 66’s dividend merits.
If you’re interested in strong dividend payers, consider researching top dividend stocks. Remember to conduct thorough research on any company you invest in to understand the risks involved.