10 Best Energy Dividend Stocks To Buy Right Now

3. Occidental Petroleum Corporation (NYSE:OXY)

Number of Hedge Fund Holders: 71

Occidental Petroleum Corporation (NYSE:OXY) is an American company that is engaged in the exploration of hydrocarbons and chemical manufacturing. In the past year, the stock has declined by over 19%, highlighting uncertainty around the stock’s performance. Investor sentiment stayed cautious as Occidental’s debt levels rose while crude oil prices fell. The stock saw its steepest decline in the latter half of 2024, coinciding with the company’s $12 billion acquisition of CrownRock in August. The deal included $1.2 billion of CrownRock’s existing debt, with Occidental raising nearly $9 billion in new debt to finance the purchase.

The acquisition greatly expanded Occidental Petroleum Corporation (NYSE:OXY)’s debt load, and the decline in crude oil prices towards the end of the year raised investor concerns. Many feared that lower oil prices would hurt the company’s earnings and cash flow while increasing interest expenses added to their unease.

That being said, investing in Occidental Petroleum Corporation (NYSE:OXY) could still be a worthwhile consideration, as it has several strengths. The company has established itself as a forward-thinking leader in the energy sector through substantial investments in carbon capture technology, supporting global energy transition goals. While an immediate rise in oil prices might not be expected, the company’s strong cash flow, sound management, and strategic approach set it up well for future growth. For long-term investors, OXY offers an attractive balance of risk and reward at its current valuation, making it a promising opportunity despite market volatility.

In addition, Occidental Petroleum Corporation (NYSE:OXY)’s dividend policy makes it a solid investment option. The company has been making regular dividend payments to shareholders for the past 45 years. It currently pays a quarterly dividend of $0.22 per share and has a dividend yield of 1.88%, as of February 8.

The number of hedge funds tracked by Insider Monkey owning stakes in Occidental Petroleum Corporation (NYSE:OXY) jumped to 71 in Q3 2024, from 62 in the previous quarter. These stakes are collectively valued at over $15.3 billion.