10-02-2013, 12:31 PM
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.
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.