Phillips 66 (PSX) - Among the Best Natural Gas and Oil Dividend Stocks to Invest in

Phillips 66 (NYSE:PSX) is included among the 15 Best Natural Gas and Oil Dividend Stock to Buy Now.

Known for its high and consistent shareholder returns, Phillips 66 (NYSE:PSX) has increased its dividend at an 11.7% CAGR since 2013 through the end of 2024. The company remains committed to returning over 50% of its net operating cash flow to shareholders through share repurchases and a secure, competitive, and growing dividend. PSX returned $906 million to shareholders through stock buybacks and dividends in the second quarter of 2025 and announced a quarterly dividend of $1.2 per share in July.

Expansion remains a top priority for Phillips 66 (NYSE:PSX), with the company announcing last month that it has agreed to acquire the remaining 50% ownership interest in WRB Refining from Cenovus Energy. The company expects the $1.4 billion all-cash deal to increase its refining capacity by adding approximately 250,000 barrels per day.

With an annual dividend yield of 3.72% as of the writing of this piece, Phillips 66 (NYSE:PSX) is included among the 13 Best Fortune 500 Dividend Stocks to Invest in.

Phillips 66 (NYSE:PSX) is a leading integrated downstream energy provider that is engaged in refining, transporting, and marketing fuels.

While we acknowledge the potential of PSX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.