Warren Buffett Buys Into Phillips 66 (PSX): Here's Why by Sure Dividend
On August 11 th, I wrote the followingabout Phillips 66 (PSX):
Phillips 66 has a solid dividend yield of 2.7% and expected earnings-per-share growth of 5%+. The company has a very shareholder friendly management as well.
Best of all, the company has a low price-to-earnings ratio of just 11.
8. Phillips 66 combination of decent growth, above-average dividends, and low valuation gives it a high rank using The 8 Rules of Dividend Investing.Phillips 66 is not a value trap. The company is an undervalued downstream oil and gas giant with a shareholder friendly management that will very likely reward shareholders with continued dividend growth and share repurchases.
Warren Buffettmust agree.
Berkshire Hathaway Inc. ( NYSE:BRK.A) ( NYSE:BRK.B) recently discloseda $4.5 billion stake in Phillips 66.
The company bought shares of Phillips 66 for prices between $71.12 and $77.22 from August 26 thto 28 th. The average price paid was $74.66.
Phillips 66 traded for lows of around $60 a share back in January of 2015. The stock is currently trading at around $79 a share.
At current prices Phillips 66 is still a bargain.
The company currently has a...
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