From 24/7 Wall St. · Chris Lange · · 1m 20s
Dividend Rises and Risks: Which Stock Wins?
Four companies raised dividends but face different risks for sustainable growth.
In brief
Four companies raised dividends but face different risks for sustainable growth. Phillips 66 has the most room to keep raising dividends after two raises this year and strong cash flow. Originally reported by 24/7 Wall St..
Dividend Raises Overview
Four companies in refining, auto retail, semiconductors, and specialty materials raised dividends this week.
Penske Automotive Group
Penske raised its quarterly dividend to $1.46 from $1.44 with a buyout price of $212 per share.
Silicon Motion
Silicon Motion increased its quarterly dividend by 15% to $0.575 but faces negative cash flow.
Avient
Avient raised its quarterly dividend to $0.2825 with a 16-year consecutive increase record.
Phillips 66
Phillips 66 raised its quarterly dividend to $1.33 with a 4.7% increase after a February raise.
Dividend Safety Metrics
Penske has a 41% payout ratio with strong earnings growth, while Phillips 66 covers dividends 12.9 times with cash.
Bull Cases
Penske's service margins hold up, Silicon Motion targets AI infrastructure growth, and Phillips 66 has new refining projects.
Risks
Penske faces a buyout, Silicon Motion has negative cash flow, Avient is exposed to tariffs, Phillips 66 has debt concerns.
Phillips 66 Wins
Phillips 66 has the most room to keep raising dividends after two raises this year and strong cash flow.
The short version
Phillips 66 has the most room to keep raising dividends after two raises this year and strong cash flow.
