09-14-2013, 11:00 AM
(This post was last modified: 09-14-2013, 11:23 AM by Horace Cugle.)
I was reading the PSX transcript from the Barclays' energy conference. Of particular interest.....
"Moving on to distributions we believe that growing shareholder distributions create total shareholder return for our company. We think that dividends need to be bullet proof. You need to know that there is cure, you need to be able to see the runway that we have to increase that dividend with time, but we’ve always said in 10 years we’re going to look back and say we increased the dividend every year. You should expect that we’ll increase the dividend in 2013."
Like it's parent COP, PSX seems to be a very shareholder friendly company.
Some investors were really POed and dumped COP because they missed a dividend raise by one quarter and then only raised it 4.5%. I started buying COP back in 2010 when the dividend was $2.00, but accumulated the bulk of the position when the dividend was $2.20 Take a look at what they actually did for shareholders since the PSX spinoff.
When COP spun off PSX the dividend was $2.64 and COP kept the whole thing, and PSX started with an $0.80 dividend. 1 for 2 spinoff so a $0.40 raise / $2.64 = 15.15% raise. Then a 4.5% raise to $2.76 on top of that five quarters later. PSX's dividend went from $0.80 --> $1.00 --> $1.25 in just a few months.
If you held onto COP and your PSX spinoff shares you could look at it like this: $2.64 + ($1.25 / 2) + $0.12 = $3.385 = 28% raise in 15 months. And now they say expect another raise this year, and for the next 10 years! I'm really pissed!
A lot of investors dumped their PSX shares shortly after the spinoff (look at a chart); I can only guess to buy more yield. The stock has gone from $34 --> $70 and has settled back down in the $55-$60 range, about a 70% cap gain.
With regard to the dividends, I don't see anything to not be absolutely delighted about for either company, so far. Of course talking big and delivering it are two different things, and there are plenty of big talking CEO's out there. And COP needs to prove it's not going to be a low DG stock.
"Moving on to distributions we believe that growing shareholder distributions create total shareholder return for our company. We think that dividends need to be bullet proof. You need to know that there is cure, you need to be able to see the runway that we have to increase that dividend with time, but we’ve always said in 10 years we’re going to look back and say we increased the dividend every year. You should expect that we’ll increase the dividend in 2013."
Like it's parent COP, PSX seems to be a very shareholder friendly company.
Some investors were really POed and dumped COP because they missed a dividend raise by one quarter and then only raised it 4.5%. I started buying COP back in 2010 when the dividend was $2.00, but accumulated the bulk of the position when the dividend was $2.20 Take a look at what they actually did for shareholders since the PSX spinoff.
When COP spun off PSX the dividend was $2.64 and COP kept the whole thing, and PSX started with an $0.80 dividend. 1 for 2 spinoff so a $0.40 raise / $2.64 = 15.15% raise. Then a 4.5% raise to $2.76 on top of that five quarters later. PSX's dividend went from $0.80 --> $1.00 --> $1.25 in just a few months.
If you held onto COP and your PSX spinoff shares you could look at it like this: $2.64 + ($1.25 / 2) + $0.12 = $3.385 = 28% raise in 15 months. And now they say expect another raise this year, and for the next 10 years! I'm really pissed!
A lot of investors dumped their PSX shares shortly after the spinoff (look at a chart); I can only guess to buy more yield. The stock has gone from $34 --> $70 and has settled back down in the $55-$60 range, about a 70% cap gain.
With regard to the dividends, I don't see anything to not be absolutely delighted about for either company, so far. Of course talking big and delivering it are two different things, and there are plenty of big talking CEO's out there. And COP needs to prove it's not going to be a low DG stock.