Boosting its dividend at a 12% compound annual growth rate from 2013 through 2023, Phillips 66 (NYSE: PSX) is undeniably dedicated to rewarding shareholders. The energy company has consistently hiked its dividend payout,  which makes it a compelling choice for investors looking to fuel their passive income with a reliable name from the oil patch. The stock's forward dividend yield of 3.5% also makes it a compelling option for income investors.

But smart investors know the danger of leaping into a dividend stock based solely on a couple of enticing numbers. Therefore, let's take a closer look at Phillips 66 and its dividend to see whether investors should consider clicking the buy button.

Phillips 66 has come a long way from its first dividend payment of $0.20 per share in September 2012. In February 2024, Phillips 66 declared a quarterly dividend of $1.05 per share, and hiked it almost 10% shortly thereafter to $1.15 per share for dividends paid in June. It again expects to pay a dividend of $1.15 per share to investors in September.

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Source Fool.com