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Phillips 66 (PSX) Dividend Strengthens Despite the Court Ruling Overshadowing Strong Quarter

Phillips 66 (NYSE:PSX) is one of the 11 Best Energy Dividend Stocks to Invest in.

An unfavorable Supreme Court order follows positive second-quarter results in California.

Texas-based company, Phillips 66 (NYSE:PSX) is a diversified energy manufacturing and logistics company, operating in four main segments: Midstream, Chemicals, Marketing & Specialties, and Refining. Founded in 2012, as a new public company spun off from ConocoPhillips, Phillips 66 (NYSE:PSX) processes, transports, and markets natural gas, natural gas liquids (NGLs), crude oil, and refined products.

Released on July 25, 2025, the company’s earnings call indicated a record high refining utilization rate of 98% since 2018. Phillips 66 (NYSE:PSX) also highlighted the Midstream segment, generating an adjusted EBITDA of approximately $1 billion. It is further anticipated to achieve $4.5 billion annual EBITDA by 2027.

While these results suggest a positive outlook, the Superior Court of California, on July 30, 2025, ordered the company to pay $195 million in exemplary damages to Propel Fuels. This will be in addition to $604.9 million in compensatory damages awarded in October 2024. Phillips 66 (NYSE:PSX) is planning to appeal, and the result of it remains uncertain.

However, the company’s Director, Gregory Hayes, boosted the confidence in the stock by purchasing 8,350 shares in a transaction valued at $1,001,165. Additionally, the dividend yield of 3.71% stands as appealing to investors seeking a stable income in the energy sector.

While we acknowledge the risk and potential of PSX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PSX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 11 Best Dividend Stocks with a Consistent 3-Year Payout History and 11 Best Annual Dividend Stocks to Buy According to Hedge Funds

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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