Phillips 66
PSXPhillips 66 (PSX) is a Energy company that currently yields 2.78% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $81.04 and the overvaluation threshold at $146.58. Phillips 66 holds a quality score of 55/100 (Average), reflecting 13 consecutive years of dividend growth with a 48% payout ratio. The 5-year dividend CAGR stands at 5.7%.
PSX Dividend Yield History — Weiss Valuation
Distance to undervalued
Entry price is stretched
Needs 54.4% downside to reach the Weiss buy zone
Undervaluation starts near $81.04, where the annual dividend would imply roughly 6.10% yield. That is 3.32% above today's yield.
Buy-zone price
$81.04
Target yield
6.10%
Research checklist
What to clear before buying the yield
Updated May 25, 2026
Dividend durability
13YLong dividend history supports a deeper look.
Earnings payout
48%Earnings coverage leaves room for noise.
Cash payout
N/AConfirm cash conversion and one-off effects.
Dividend growth
5.7%Recent growth adds income compounding potential.
What changed
What changed since the last update
2026-05-23 → 2026-05-25
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
Phillips 66 is trading near its historical overvaluation band.
Current yield 2.8% vs historical max 5.6% (50% of maximum).
13 consecutive years without a dividend cut.
Conservative payout ratio of 48%.
What matters now
Read the signal before the headline yield
Valuation is the brake here: the yield is compressed versus its own history.
The 55/100 quality score says the headline yield needs extra skepticism.
Start by checking whether payout coverage and business durability still support the dividend.
PSX Dividend Income Projection — DRIP Compounder
Dividend Compounder (DRIP)
Year 1 Income
$294
Year 10 Income
$671
Yield on Cost
7.04%
Total Income
$4,545
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗PSX Dividend Quality Score
Quality Score
Average
Key Metrics
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In-depth analysis
→ PSX Dividend Analysis Article