Warren Buffett Buys Into Phillips 66 (PSX): Here's Why by Sure Dividend On August 11th, I wrote the following about Phillips 66 (PSX): Phillips 66 has a solid dividend yield of 2.7% and expected earnings-per-share growth of 5%+. The company has a very shareholder friendly management as well. Best of all, the company has a low price-to-earnings ratio of just 11.8. Phillips 66 combination of decent growth, above-average dividends, and low valuation gives it a high rank using The 8 Rules of Dividend Investing. Phillips 66 is not a value trap. The company is an undervalued downstream oil and gas giant with a shareholder friendly management that will very likely reward shareholders with continued dividend growth and share repurchases. Warren Buffett must agree. Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) recently disclosed a $4.5 billion stake in Phillips 66. The company bought shares of Phillips 66 for prices between $71.12 and $77.22 from August 26th to 28th. The average price paid was $74.66. Phillips 66 traded for lows of around $60 a share back in January of 2015. The stock is currently trading at around $79 a share. At current prices Phillips 66 is still a bargain. The company currently has a... More