Phillips 66 (PSX) Dividend Strengthens Despite the Court Ruling Overshadowing Strong Quarter

Phillips 66 (NYSE:PSX) is one of the 11 Best Energy Dividend Stocks to Invest in.

An unfavorable Supreme Court order follows positive second-quarter results in California.

Texas-based company, Phillips 66 (NYSE:PSX) is a diversified energy manufacturing and logistics company, operating in four main segments: Midstream, Chemicals, Marketing & Specialties, and Refining. Founded in 2012, as a new public company spun off from ConocoPhillips, Phillips 66 (NYSE:PSX) processes, transports, and markets natural gas, natural gas liquids (NGLs), crude oil, and refined products.

Released on July 25, 2025, the company’s earnings call indicated a record high refining utilization rate of 98% since 2018. Phillips 66 (NYSE:PSX) also highlighted the Midstream segment, generating an adjusted EBITDA of approximately $1 billion. It is further anticipated to achieve $4.5 billion annual EBITDA by 2027.

While these results suggest a positive outlook, the Superior Court of California, on July 30, 2025, ordered the company to pay $195 million in exemplary damages to Propel Fuels. This will be in addition to $604.9 million in compensatory damages awarded in October 2024. Phillips 66 (NYSE:PSX) is planning to appeal, and the result of it remains uncertain.

However, the company’s Director, Gregory Hayes, boosted the confidence in the stock by purchasing 8,350 shares in a transaction valued at $1,001,165. Additionally, the dividend yield of 3.71% stands as appealing to investors seeking a stable income in the energy sector.

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