PSX

[fiveoh]

Wow nice. You know I've considered adding to my PSX shares a few times but am concerned with the WTI/brent spread narrowing so much. It's also seems to swing a lot in either direction which I don't like.... but the dividend growth is excellent.

[TomK]

Great raise! And even with the raise, the payout ratio is really low (in the 20 to 30% range), so they still have a ton of headroom to provide nice increases going forward. Earnings are not projected to skyrocket, but even so, PSX could be looking at a very nice few years ahead, from a dividend growth perspective.

Just a quick back of the envelope (and please feel free to check my math): If they raise the dividend 20% every year from here, and if earnings stay completely flat, in five years the payout ratio will still only be around 50 percent.

It was not near the top of my shopping list, but I might consider adding more now.

[fiveoh]

I just added to my PSX position today. As has been said in this thread, great div growth, good management, low payout ratio.

[Horace Cugle]

Good move I like it. If they keep going like this in a few years it'll be $100 stock.

I added some back a month or so ago at $56.20. I have a 3.3% position in PSX and if I was younger I'd probably accumulate twice that much.

[Kerim]

I picked up 25 shares of PSX this morning at $56.91. I agree that its dividend growth prospects look too strong to ignore right now.

[TomK]

$60.42 at this moment -- not a bad return in less than 2 days, Kerim!

[Kerim]

Ha, yes -- not bad at all. My planned holding period is considerably longer, but I am certainly glad to have picked up those shares before it popped back up.

[TomK]

PSX is having a nice pop today. At over $71 per share, it looks like the posts in this thread from early October were dead on. Of course it is far too short-term to draw any real conclusions, but the rise is coming despite lower oil prices in general. It sure does seem to support the thesis that the share price will follow the dividend upwards.

[fiveoh]

The Brent/WTI spread affects PSX more than oil prices do. I wish I would have bought more @ 58 in Oct. Oh well, it's pretty volatile, might have another buying opportunity soon.

[fiveoh]

New $2 billion share repurchase program just announced from PSX.

[EricL]

Another good article on PSX today talking about the crack spread and the potential upcoming glut of sweet crude from the shale plays.

http://seekingalpha.com/article/1885301-...ing_notify

[TomK]

I just re-read this old thread from the start. An entertaining read indeed in light of today's additional large dividend increase to $2.00 per share.

The payout ratio is still low, earnings projections look good, and they are really "walking the walk" on the dividend. So how do you all feel about PSX at about $85 a share? Are you guys still buying?

I'm tempted to get a bit more for myself. This ride could still be excellent for a number of years more before maturing to more normal growth.