July 27, 2025 a 07:46 am
OXY: Dividend Analysis - Occidental Petroleum Corporation
Occidental Petroleum Corporation demonstrates a nuanced dividend profile with steady payment history and a moderate yield of 2.10%. The company's approach towards sustaining its dividend in recent turmoil indicates financial resilience. While the growth trend is not spectacular, it offers a stable income stream for investors seeking consistent returns.
Overview 📊
The dividend yield and historical consistency provide an indication of the company's commitment to returning capital to shareholders.
| Data Point | Value |
|---|---|
| Sector | Energy |
| Dividend yield | 2.10% |
| Current dividend per share | 1.56 USD |
| Dividend history | 44 years |
| Last cut or suspension | None |
Dividend History 🗣️
A stable dividend history is a testament to the company's capacity to maintain shareholder returns even in challenging markets.
| Year | Dividend Per Share |
|---|---|
| 2025 | 0.48 |
| 2024 | 0.88 |
| 2023 | 0.72 |
| 2022 | 0.52 |
| 2021 | 0.04 |
Dividend Growth 📈
Dividend growth is a critical indicator of future payout potential and shareholder value enhancement.
| Time | Growth |
|---|---|
| 3 years | 1.80% |
| 5 years | -0.22% |
The average dividend growth is -0.22% over 5 years. This shows modest contraction but stability in dividend distribution.
Payout Ratio ⚠️
The payout ratio reflects the proportion of earnings and cash flows distributed as dividends, impacting sustainability.
| Key Figure Ratio | Percentage |
|---|---|
| EPS-based | 47.28% |
| Free cash flow-based | 33.67% |
The EPS-based payout ratio of 47.28% and FCF-based ratio of 33.67% suggest a balanced approach in dividend distribution.
Cashflow & Capital Efficiency ✅
Cash flow efficiency highlights the company's ability to generate cash relative to its expenditures.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 21.36% | 11.42% | 9.65% |
| Earnings Yield | 22.80% | 8.84% | 6.67% |
| CAPEX to Operating Cash Flow | 25.88% | 50.74% | 61.35% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 74.12% | 49.26% | 38.65% |
The declining free cash flow yield reflects increasing CAPEX but demonstrates sufficient cash cushion for dividends.
Balance Sheet & Leverage Analysis ⚠️
Leverage metrics are critical for assessing the company's ability to service debt and maintain liquidity.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 69.02% | 69.13% | 79.35% |
| Debt-to-Assets | 28.60% | 28.26% | 31.72% |
| Debt-to-Capital | 40.84% | 40.87% | 44.24% |
| Net Debt to EBITDA | 0.89 | 1.34 | 1.98 |
| Current Ratio | 1.15 | 0.92 | 0.95 |
| Quick Ratio | 0.88 | 0.69 | 0.73 |
| Financial Leverage | 2.41 | 2.45 | 2.50 |
Despite rising debt metrics, maintained leverage ratios indicate manageable financial risk.
Fundamental Strength & Profitability 📈
Profitability ratios provide insights into operational efficiency and shareholder returns.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 44.22% | 15.52% | 8.95% |
| Return on Assets | 18.32% | 6.35% | 3.58% |
| Margins: Net | 36.32% | 16.62% | 11.43% |
| EBIT | 41.35% | 26.10% | 19.63% |
| EBITDA | 60.48% | 51.45% | 47.21% |
| Gross Margin | 48.17% | 35.78% | 35.73% |
| Research & Development to Revenue | 0% | 0% | 0% |
Declines in profitability measures against historical highs suggest challenges in margin sustainability.
Price Development 📉
Dividend Scoring System 🏆
| Category | Score | Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 2 | |
| Payout ratio | 3 | |
| Financial stability | 3 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 25/40
Rating ⭐
The Occidental Petroleum Corporation presents a balanced dividend strategy that aligns with industry dynamics. While growth is moderate, the strong dividend history and manageable payout ratios ensure a consistent return for income-focused investors. Further emphasis on improving profitability and leverage will enhance future ratings.