Occidental Petroleum (OXY) DIvidends Date & History

Key Takeaways

• Occidental Petroleum offers a forward dividend yield of 1.77%, paid quarterly at $0.26 per share.
• The company has increased its dividend five times over the past five years, with a payout ratio around 64%.
• Strong free cash flow generation of over $6 billion annually supports dividend sustainability.
• OXY's yield is below the energy sector average of 3.5%, positioning it as a modest payer among peers.
• Next ex-dividend date is June 10, 2026, with payment on July 15, 2026.

Dividend Overview

Occidental Petroleum (OXY), a major player in oil and gas exploration and production, maintains a quarterly dividend policy with a forward annual payout of $1.04 per share, yielding approximately 1.77% as of recent data. The most recent quarterly dividend is $0.26 per share, up from $0.24 in late 2025, reflecting ongoing commitment to shareholders amid fluctuating energy prices. This positions OXY as a modest dividend stock rather than a high-yield or aggressive growth contender, suitable for investors seeking stability in the cyclical energy sector. Payments are reliable, with the next ex-dividend date set for June 10, 2026.

Dividend History and Growth

Occidental Petroleum has a history of adapting its dividend to energy market conditions, including cuts during the 2020 oil price crash and the 2019 Anadarko acquisition. However, since then, the company has pursued steady growth, raising its dividend five consecutive times over the past five years at an average annual rate of about 3.2%. Recent hikes include an 8.3% increase to $0.26 per share declared in early 2026. While not a Dividend Aristocrat with decades of uninterrupted increases, OXY's strategy emphasizes balancing shareholder returns with debt reduction and capital investments in Permian Basin assets.

Dividend Sustainability and Payout Ratio

OXY's dividend appears sustainable, with a payout ratio of approximately 64.6% of earnings, leaving room for reinvestment and volatility buffers. Free cash flow (FCF), a key metric for energy firms measuring cash after capital expenditures, exceeded $6 billion in 2024 and remains robust at around $4-6 billion annually, easily covering the roughly $900 million annual dividend obligation. Earnings per share (EPS) of $1.35 trailing twelve months (TTM) further supports coverage. Moderate debt levels post-deleveraging efforts enhance stability, though sensitivity to oil prices warrants monitoring.

Dividend Compared to Industry Peers

In the oil and gas exploration and production sector, OXY's 1.77% yield trails the sector average of 3.51%. Peers like ExxonMobil (XOM) offer around 3.5-4%, Chevron (CVX) over 4%, and ConocoPhillips (COP) about 2.5-3%. OXY's lower yield reflects its focus on growth investments and debt paydown rather than maximizing distributions, making it less competitive for pure income seekers but appealing for total return-oriented investors in energy.

AI Screener

Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. It efficiently identifies dividend stocks, income-focused investments, trending stocks, breakout candidates, and market opportunities more effectively than manual screening. Explore the AI Screener to streamline your research today.

Is This Stock Attractive for Dividend Investors?

Occidental Petroleum (OXY) may appeal to dividend investors comfortable with energy sector cyclicality, particularly those prioritizing total returns over high immediate income. Its modest 1.77% yield and recent growth suit long-term holders betting on oil demand and Permian production efficiency. Conservative income seekers might prefer higher-yielding integrated majors like CVX or XOM, given OXY's history of adjustments during downturns. Growth-oriented dividend investors could value the payout increases and FCF strength, which support potential future hikes if commodity prices stabilize. Balanced portfolios blending energy exposure with dividend reliability may find OXY a complementary holding, though volatility tied to crude oil remains a key consideration.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations