Phillips 66 (PSX) will raise its quarterly dividend by 2.2 percent to $0.92 per share in 2021. This is the first dividend hike by the energy company since 2019 with a 12.5 percent increase to $0.90 per share last announced in the second quarter of 2019. Last year PSX did not raise its dividend.

The dividend is payable on December 1, 2021, to shareholders of record as of the close of business on November 17, 2021. The new annual rate of $3.68 per share yields 4.6% at a stock price of $80.87.

“We are increasing our dividend this quarter, demonstrating our commitment to shareholder returns and reflecting our confidence in the company’s strategy and cash flow recovery,” said Phillips 66 Chairman and CEO Greg Garland. “We have increased the dividend 10 times since our inception in 2012, resulting in an 18% compound annual growth rate. We also have reduced our debt balance by $1 billion this year and will continue prioritizing debt repayment to return to pre-pandemic levels.”

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. Headquartered in Houston, the company has 14,000 employees committed to safety and operating excellence. Phillips 66 had $57 billion of assets as of June 30, 2021.