Where does Occidental (OXY) rank after its 1% announced dividend increase?

OXY

Summary: Occidental’s (NYSE: OXY) dividend was increased by 1% with an overall yield above that of the S&P 500 Index at 3.94%. Occidental Petroleum produces and markets crude oil and natural gas; manufactures industrial chemicals, plastics & fertilizers; and transports natural gas through pipelines. Occidental currently ranks 3rd in yield within the large cap basic materials – independent oil & gas category. Occidental has maintained a solid three-year growth rate of dividends of 17.7 percent.

The quarterly dividend for the October payment will be $0.76 versus the prior year rate of $0.75 per share. Occidental Petroleum Corp. is a member of our Top 100 Dividend Stocks (see below).

top-100

The dividend will be paid at the new higher rate on October 14, 2016, to shareholders of record at close of business on September 9, 2016. Occidental is currently priced at $77.21. Listed in the table below are the quarterly dividend payments since 2010.

Date Quarterly Dividend
9/9/2016 0.76
6/8/2016 0.75
3/8/2016 0.75
12/8/2015 0.75
9/8/2015 0.75
6/8/2015 0.75
3/6/2015 0.72
12/8/2014 0.72
9/8/2014 0.691
6/6/2014 0.691
3/6/2014 0.691
12/6/2013 0.614
9/6/2013 0.614
6/6/2013 0.614
3/6/2013 0.614
12/6/2012 0.518
9/6/2012 0.518
6/6/2012 0.518
3/7/2012 0.518
12/7/2011 0.441
9/7/2011 0.441
6/8/2011 0.441
3/8/2011 0.441
12/8/2010 0.365
9/8/2010 0.365
6/8/2010 0.365
3/8/2010 0.317

Analysis of Occidental Petroleum Corp. is based upon our five key criteria, which include; 

Category Value Score
Dividend Yield 3.94% 32
Dividend Growth (3-6 year avg) 17.2%  57
Forward P/E 22.81  243
S&P Financial Rating A  120
Beta 1.20  175
Total Score   627

Additional Information on P/S ratio and historical yield;

% Yield 3 Year Div. Growth Rate 6 Year Div. Growth Rate SPS 2016 P/S Ratio 10 yr P/S Low 10 yr P/S High 5 yr lowest Yield % 5 yr max Yield %
3.94% 17.7% 16.7% 13.05 5.52 2.33 5.92 1.62% 4.87%

Final Analysis;   

Positives;

  • Occidental maintains a 3 year dividend growth rate of 17.7%.
  • Occidental maintains a credit rating of A. This is investment grade.
  • Occidental has paid out a dividend consecutively for the past 23 years.
  • Occidental current dividend yield (3.94%) is above its five-year average historical dividend yield of 3.25%.
  • Occidental dividend yield is above that of the S&P 500 Index.

Negatives;

  • Occidental is trading at the top of its ten-year average price/sales (P/S) range.
  • Occidental maintains a beta of 1.20, higher than the average company.

Based on the firm’s consistent dividend increases, high credit rating and high yield, Occidental Petroleum Corp. is a member of our  Top 100 Dividend Stocks list. 

Occidental Petroleum Corp. Dividend Yield Chart (Click to enlarge)


OXY2

Chart Explanation:  Dividend growth stocks may be viewed favorably when the current yield is above historical readings for the past 5 years.

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