Phillips 66 dividend
Phillips 66's current rate is $1.27 quarterly, or $5.08 per share. In 2025, shareholders received $3,129 million against free cash flow of $2,729 million, so cash did not cover all shareholder payments.
How much does Phillips 66 pay in dividends?
In 2022, free cash flow was $8,925 million. Shareholder payments were $3,306 million. The balance looked very different in 2024: free cash flow was $2,332 million, while shareholders received $5,333 million. Buybacks, which are purchases of the company’s own shares, fell from $3,451 million in 2024 to $1,207 million in 2025. Dividends were steadier.
The dividend starts at $5.08 per share, matching the current $1.27 quarterly rate. The base case raises it to $5.28 and $5.48; the bear case freezes it; the bull case reaches $5.36 and $5.64. The base path follows the record of annual increases while recognizing that the 50% cash-return target does not specify dividend growth.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| − Dividends paid, per share | 4.71 | 4.46 | 4.15 | 3.78 | 3.60 |
| − Share buybacks, per share | 2.96 | 8.18 | 8.86 | 3.19 | 0.00 |
| = FCF not paid out, per share | 11.47 | 5.10 |
Does Phillips 66's cash cover its dividend?
The company also recycled assets. In 2025, businesses and assets sold brought in $3,520 million. Acquisitions cost $3,498 million. That looks broadly self-funding, but shareholders still received $3,129 million against free cash flow of $2,729 million. Asset sales can finance purchases, but they do not prove that the remaining businesses generated enough spare cash.
Phillips 66 generated substantial cash in 2025, but investment and timing reduced what owners could freely claim. Operating cash flow was $4,962 million in 2025. Capital spending was $2,233 million, leaving free cash flow of $2,729 million.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 2,729 | 2,332 | 4,874 | 8,925 | 4,157 |
| − Dividends paid | 1,922 | 1,882 | 1,882 | 1,793 | 1,585 |
| − Share buybacks | 1,207 | 3,451 | 4,014 | 1,513 | 0 |
| = Free cash flow not paid out | 5,434 | 2,248 | |||
| = Paid out more than the free cash flow | 564 | 3,071 | 1,185 | ||
| Paid out, % of free cash flow | 114.7% | 228.7% | 121.0% | 37.0% | 38.1% |
What is Phillips 66's dividend yield today?
Revenue has fallen from its 2022 peak while operating margin and the company’s own free-cash-flow margin move with the cycle. In 2025, reported earnings improved, but adjusted net income was $2,632 million and asset-sale gains lifted the reported result. Shareholders received $1.38 per share more than free cash flow after dividends and buybacks. At $297.29, Phillips 66 has a 16.9x trailing P/E and a 9.7x forward P/E, against a 2.3% free-cash-flow yield and 1.7% dividend yield. Market value is $118,625 million; enterprise value is $135,091 million. Free cash flow is the company’s own figure: cash from operations minus capital spending.
| Today (Oct 15, 2026) | |
|---|---|
| Share price | 297.29 |
| Market value (calculated) | 118,625 |
| Enterprise value (calculated) | 135,091 |
| Free cash flow yield (calculated) | 2.3% |
| Dividend yield (calculated) | 1.7% |
What this means. The lower price-to-earnings number uses analysts’ expected profit for the next year, so it is only an estimate, not what the company has already earned.