So where does one think the money will come from to pay for the dividend increase?
BT, layoff, or July raises?
https://investor.phillips66.com/financial-information/news-releases/news-release-details/2024/Phillips-66-Announces-Increase-in-Quarterly-Dividend/default.aspx
You do pay less dividends but you pay the full price of the stock upfront. At -$157 per share and a dividend of $4.60 per year it would take 34 years to payoff.
This money could be invested in projects with a much shorted payout.
But, the buybacks do artificially and temporarily prop up the share price.
Buybacks actually do ease the cost of future dividends. Less shares to pay dividends on.
You’re paying yourself the dividends. DUH!
Buybacks don’t help pay dividends at all.
They just tie up a lot of capital that could be invested in plant and equipment. At $170 dollars a share, that’s a lot of capital.3
The nice thing about buying back shares is that you can increase your dividend and not significantly increase the total spend on dividends.
Buybacks t boy
I don’t think BT or layoffs have saved nearly enough money to pay for the increased dividend.
My guess is the money will come from accounts that should have been used to increase the reliability of our refineries.
Increasing the dividend seems very short sighted and selfish on the part of the CEO. It seems they are desperate to stave off Elliott and keep their cushy positions.