PSX - Forget Marathon Petroleum: Phillips 66 Is a Better Dividend Stock
This year has been brutal for the refining industry. The COVID-19 outbreak has hammered demand for gasoline and jet fuel, taking refining margins and stock prices down with it. Giants Marathon Petroleum (NYSE: MPC) and Phillips 66 (NYSE: PSX) have both shed roughly 40% of their value this year.
On the bright side, as stock prices sell off, dividend yields rise, with Marathon's payout now up to 6.6%, while Phillips 66's is 5.3%. However, even though Marathon's higher yield might be tempting, Phillips 66 is the better income stock. Here's why.
Image source: Getty Images.