13 Best Warren Buffett Dividend Stocks To Invest In Right Now

6. Occidental Petroleum Corporation (NYSE:OXY)

Number of Hedge Fund Holders: 71

Occidental Petroleum Corporation (NYSE:OXY) is an energy company that is engaged in the exploration of hydrocarbons and chemical manufacturing. The company has positioned itself as a forward-looking leader in the energy sector by making significant investments in carbon capture technology, aligning with global energy transition objectives. Although a short-term spike in oil prices may not be anticipated, the company’s strong cash flow, effective management, and strategic approach provide a solid foundation for future growth. For long-term investors, OXY presents an appealing balance of risk and reward at its current valuation, making it a promising opportunity despite market fluctuations.

Occidental Petroleum Corporation (NYSE:OXY) has faced some challenges in the past year, falling by nearly 17% during this period. The stock experienced its sharpest decline in the second half of 2024, following 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. This acquisition significantly increased Occidental’s debt burden, and the drop in crude oil prices toward the end of the year raised concerns among investors. Many feared that lower oil prices would negatively impact the company’s earnings and cash flow, while the added interest expenses from the new debt further heightened their worries.

However, Occidental Petroleum Corporation (NYSE:OXY)’s dividend policy makes it a lucrative investment for income investors. The company has paid uninterrupted dividends to shareholders for 45 consecutive years. It currently pays a quarterly dividend of $0.22 per share and has a dividend yield of 1.82%, as of February 10.