Phillips 66 (PSX) hiked its dividend by over 4.3% on April 21, despite lower earnings and cash flow. PSX stock looks cheap with its 4.5%+ annual dividend yield, well over its historical average. Moreover, out-of-the-money (OTM) short-put plays one month out yield 2.4%.
PSX stock is at $105.72 in midday trading on Tuesday, April 29. That is well off its peak of $136.53 on Dec. 6, although up from a recent trough of $92.87 on April 8. This article will show that PSX could be worth significantly more based on its historical yield, and a way to play this is by shorting OTM puts.
