When it comes to investing in the energy sector, many investors turn to giants like ExxonMobil for their consistent dividends and stable performance. However, there is another player in the industry that is worth considering: Phillips 66 (NYSE: PSX). This midstream, refining, chemical, and marketing company has been making waves in the market and could be a solid addition to your portfolio.
Phillips 66 has been working hard to navigate the challenges brought on by the COVID-19 pandemic. Despite posting a $4 billion loss in 2020, the company has been focused on cutting costs, rethinking its portfolio, and setting ambitious targets for the future. By divesting retail and marketing assets, targeting cost savings, and investing in new projects like its biofuel facility in San Francisco, Phillips 66 is positioning itself for growth and sustainability in the ever-changing energy landscape.
One of the key reasons why Phillips 66 stands out as a reliable dividend stock is its commitment to returning capital to shareholders. With a track record of raising its dividend at a compound annual rate of 16% since its inception in 2012, Phillips 66 is dedicated to providing value to its investors. The company has already announced plans to return $13 billion to $15 billion to shareholders between July 2022 and year-end 2024, demonstrating its confidence in its long-term prospects.
Despite its recent stock price decline, Phillips 66 presents an attractive buying opportunity for investors. With a price-to-earnings ratio of 10.8, a dividend yield of 3.3%, and a solid track record of growth and innovation, Phillips 66 is a quality dividend stock that should be on your radar.
At Extreme Investor Network, we believe in providing our readers with unique insights and actionable information to help them make informed investment decisions. If you’re looking to diversify your energy holdings and add a reliable dividend stock to your portfolio, consider taking a closer look at Phillips 66. With its focus on sustainability, growth, and shareholder returns, Phillips 66 could be a valuable addition to your investment strategy.