June 01, 2026 a 03:31 am
OXY: Dividend Analysis - Occidental Petroleum Corporation
Occidental Petroleum Corporation presents a promising dividend profile, striking a balance between yield and growth. With a longstanding history of consistent dividend payments over 45 years, the company's fiscal health is emblematic of resilience and adaptability in the sector. Its current metrics exhibit a moderate dividend yield and a commendable history of consistent payments.
📊 Overview
Occidental Petroleum operates in the Energy sector, offering investors a competitive dividend yield of 1.77%. The current dividend per share is $1.63, underpinned by a 45-year history of consistent payments. The absence of recent cuts highlights stability.
| Sector | Dividend Yield | Current Dividend Per Share | Dividend History | Last Cut or Suspension |
|---|---|---|---|---|
| Energy | 1.77% | $1.63 | 45 years | None |
🗣️ Dividend History
The importance of a strong dividend history cannot be overstated. Occidental’s 45-year stretch without significant interruption is a testament to its financial stability and commitment to shareholder value.
This image highlights the trend and consistency in the company's dividend payments over the years.
| Year | Dividend Per Share |
|---|---|
| 2026 | $0.52 |
| 2025 | $0.96 |
| 2024 | $0.88 |
| 2023 | $0.72 |
| 2022 | $0.52 |
📈 Dividend Growth
Dividend growth is a crucial indicator of fiscal health, representing the company's capacity to enhance returns over time. Occidental displays a modest growth rate, which is essential for sustained investor interest.
| Time | Growth |
|---|---|
| 3 years | 22.67% |
| 5 years | 3.20% |
The average dividend growth is 3.20% over 5 years. This shows moderate but steady dividend growth.
This image visualizes the growth trajectory of Occidental's dividends across recent years.
✅ Payout Ratio
Payout ratios are pivotal, indicating how much of earnings and free cash flow are distributed as dividends. A lower payout ratio suggests sustainable dividend payments.
| Key Figure | Ratio |
|---|---|
| EPS-based | 33.86% |
| Free cash flow-based | 45.56% |
The EPS payout ratio of 33.86% and FCF payout ratio of 45.56% indicate a balanced approach, suggesting dividends are well-covered by earnings and cash flow.
💼 Cashflow & Capital Efficiency
A comprehensive evaluation of cash flow metrics is essential for understanding the firm’s operational efficiency and financial stamina. These metrics shed light on how effectively Occidental is using its capital and generating returns for investors.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 10.23% | 9.81% | 11.42% |
| Earnings Yield | 5.91% | 6.75% | 8.80% |
| CAPEX to Operating Cash Flow | 61.02% | 61.35% | 50.74% |
| Stock-based Compensation to Revenue | 0% | 0.84% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 38.98% | 38.65% | 49.26% |
| Return on Invested Capital | 3.15% | 5.48% | 7.13% |
The consistency in free cash flow yields and other efficiency ratios underlines the financial discipline of Occidental and its capability to deliver returns.
⚖️ Balance Sheet & Leverage Analysis
Analyzing leverage ratios helps assess the risk associated with the company’s capital structure. It is crucial for gauging Occidental’s financial stability and ability to fulfill its debt obligations.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 66.48% | 79.35% | 69.13% |
| Debt-to-Assets | 27.60% | 31.72% | 28.26% |
| Debt-to-Capital | 39.93% | 44.24% | 40.87% |
| Net Debt to EBITDA | 1.93 | 1.96 | 1.34 |
| Current Ratio | 93.63% | 95.26% | 91.55% |
| Quick Ratio | 74.29% | 73.26% | 69.45% |
| Financial Leverage | 2.41 | 2.50 | 2.45 |
These leverage ratios reveal Occidental's strategic use of debt, ranking moderately in terms of capital risk, indicating a robust balance sheet capable of withstanding market volatilities.
📈 Fundamental Strength & Profitability
Profitability ratios reflect the company’s ability to generate earnings relative to sales, equity and assets. Occidental’s performance is indicative of healthy financial performance and efficient operations.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 6.57% | 8.91% | 15.45% |
| Return on Assets | 2.73% | 3.56% | 6.31% |
| Net Margin | 10.97% | 11.23% | 16.49% |
| EBIT Margin | 17.24% | 19.35% | 26.03% |
| EBITDA Margin | 52.63% | 46.95% | 51.31% |
| Gross Margin | 33.78% | 35.61% | 34.39% |
| R&D to Revenue | 0% | 0% | 0% |
Occidental's strong margins and return metrics are indicative of efficient operations and solid profitability.
📉 Price Development
This image details the recent trends in Occidental Petroleum's stock price, reflecting market sentiment and valuation shifts over time.
⭐ Dividend Scoring System
| Criteria | Score | |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 2 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 31/40
📊 Rating
Occidental Petroleum Corporation's dividend profile is solidified by its historic stability, sustainable payout ratios, and robust financial metrics. Although dividend growth is moderate, overall, the stock offers a reliable income source, suitable for investors prioritizing stability over high yield rates.
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