Phillips 66 (PSX) will raise its quarterly dividend by 12.5 percent to $0.90 per share in the second quarter of 2019. Last year PSX hiked its quarterly dividend by 14.3 percent.

The dividend is payable on June 3, 2019, to shareholders of record as of the close of business on May 20, 2019. The new annual rate of $3.60 per share yields 4.2% at a stock price of $85.90.

“The increase demonstrates our continued dedication to a secure, competitive and growing dividend,” said Greg Garland, chairman and CEO of Phillips 66. “We have increased the dividend nine times since our inception in 2012, resulting in a 25% compound annual growth rate. Disciplined capital allocation is fundamental to our strategy, and we continue to balance investment in growth opportunities that offer strong returns, with shareholder distributions through dividends and share buybacks.”

Phillips 66 is an energy manufacturing and logistics company with midstream, chemicals, refining, and marketing and specialties businesses. The company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners (PSXP), the company's master limited partnership, is an integral asset in the portfolio.