Earlier this week the Board of Directors of Phillips 66 (PSX) announced another increase in their dividend. This was their second increase since being spun off from ConocoPhillips (COP) in the middle of last year. The new rate is $0.3125 and is a 25% increase from the $0.25 quarterly dividend paid in December and a 56% increase from their first payout back in September. It's great to see management increasing the dividend further. I expect the dividend growth to slow down because management was originally targeting a 5% annual growth in the dividend once they were spun off.
The new dividend rate will be payable on March 1st to shareholders of record as of February 18th. Seeing a dividend increase for one of the companies I own is one of my favorite things as a dividend growth investor. Unfortunately my position in PSX is very small so this won't increase the dividends paid that much. I will receive an extra $2.50 in dividends from PSX before any reinvestment or future increases.
My forward 12-month dividends now sits at $1,892.22