Phillips 66

PSX
Energy
$242.87
2.03%Overvalued

Phillips 66 (PSX) is a Energy company that currently yields 2.03% — 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 $151.31. Phillips 66 holds a quality score of 50/100 (Average), reflecting 13 consecutive years of dividend growth. The 5-year dividend CAGR stands at 5.7%.

PSX Dividend Yield History — Weiss Valuation

Underval. $81.04Overval. $151.31

Distance to undervalued

Entry price is stretched

Needs 66.6% downside to reach the Weiss buy zone

Undervaluation starts near $81.04, where the annual dividend would imply roughly 6.10% yield. That is 4.06% above today's yield.

Buy-zone price

$81.04

Target yield

6.10%

Research checklist

What to clear before buying the yield

Updated Aug 23, 2026

Dividend durability

13Y

Long dividend history supports a deeper look.

Earnings payout

226%

Coverage deserves a closer look in filings.

Cash payout

45%

Free cash flow coverage supports the payment.

Dividend growth

5.7%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-08-222026-08-23

Quality score

-25

75/100 50/100

Quality score weakened by 25 points.

Payout ratio

+197.37 pp

28% 226%

Payout ratio increased by 197 percentage points.

Why Now?

Phillips 66 is trading near its historical overvaluation band.

Current yield 2.0% vs historical max 5.6% (37% of maximum).

13 consecutive years without a dividend cut.

Elevated payout ratio of 226%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 50/100 quality score says the headline yield needs extra skepticism.

The earnings payout ratio is above 100%, so coverage is the first risk to unpack.

PSX Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$215

Year 10 Income

$450

Yield on Cost

4.66%

Total Income

$3,172

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

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PSX Dividend Quality Score

Quality Score

50/ 100

Average

Payout Ratio0/25
Dividend Streak20/25
Growth (CAGR 5Y)15/20
Yield vs History0/15
FCF Coverage15/15

Key Metrics

Current Price$242.87
Annual Dividend$4.94
Current Yield2.03%
Yield — Max (10Y)5.55%
Yield — Min (10Y)2.84%
Undervalued Below$81.04
Overvalued Above$151.31
Payout Ratio225.57%
CAGR Dividend 5Y5.7%
CAGR Dividend 10Y8.1%
Years No Cut13y

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13
consecutive years of dividend growth