The board of directors of
Occidental Petroleum Corporation
) has approved an increase in its quarterly dividend by 18.5% to
64 cents per share from its earlier payment of 54 cents. As a
result of this revision, the company's annualized dividend will
be $2.56 per share. This dividend is payable on Apr 15, 2013 to
shareholders of record as of Mar 8, 2013.
The new annual dividend yield will be 2.94%. This is higher than
the other players in the oil and gas sector, including
Marathon Oil Corporation
Murphy Oil Corporation
) with yields of 0.59%, 1.92% and 2.07%, respectively.
Occidental Petroleum's dividend-payment history affirms its
commitment to maximize shareholder wealth. Previously, the
company had increased its dividend in Feb 2012. Quarterly
dividend payout climbed 17.4% to 54 cents per share from 46 cents
per share. The company values its owners and has been trying to
boost their income through dividend hikes and consistent
payments. The company hiked its dividend rate for 12 times in
that 11 year window with annualized compounded growth rate of
Occidental Petroleum's fourth-quarter 2012 cash flow from
operating activities was $11.3 billion and its cash balance was
$1.6 billion as of Dec 31, 2012. We believe the strong liquidity
position of the company will be sufficient to meet its
anticipated cash requirements and drive growth along with
enhancing shareholders' value over the next couple of years.
In the current market condition, we expect Occidental Petroleum
to continue benefiting from rising oil prices given its oil-heavy
production and reserve base. In addition, the company continues
to take several cost-cutting measures like production curtailment
and planned shutdowns of a few plants, which may improve its
upcoming operating and financial performance.
Los Angeles, California-based Occidental Petroleum along with its
subsidiaries operates as an oil and gas exploration and
production company. The company currently has a Zacks Rank #3
HESS CORP (HES): Free Stock Analysis Report
MARATHON OIL CP (MRO): Free Stock Analysis
MURPHY OIL (MUR): Free Stock Analysis Report
OCCIDENTAL PET (OXY): Free Stock Analysis
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