Warren Buffett Dividend Stocks by Sectors and Industries

6. Occidental Petroleum Corporation (NYSE:OXY)

Berkshire Hathaway’s Stake Value: $16,090,394,458

Sector: Energy

Industry: Oil & Gas E&P

Occidental Petroleum Corporation (NYSE:OXY) is an American energy company that is engaged in the exploration of hydrocarbon and is also involved in the manufacturing of petrochemicals. In contrast to Chevron, OXY is primarily focused on domestic operations, with 80% of its production projected to come from the US in 2022. The strength of the company’s operational performance led to strong financial results for the second quarter of 2024. The company is enthusiastic about maintaining this positive momentum through its extensive and varied asset portfolio, now enhanced by the addition of CrownRock.

Occidental Petroleum Corporation (NYSE:OXY) is optimistic about its recent acquisition. The company has set a goal to reduce its debt principal by at least $4.5 billion within a year of completing the CrownRock acquisition. To achieve this, the company plans to use a mix of excess free cash flow and funds from asset sales. Occidental anticipates that CrownRock will increase its free cash flow by $1 billion per year at an oil price of $70 (with current crude oil prices around $75) and aims to sell between $4.5 billion and $6 billion in assets in the future.

In the second quarter of 2024, Occidental Petroleum Corporation (NYSE:OXY) reported an operating cash flow of $2.4 billion and its free cash flow before working capital amounted to $1.3 billion. The company currently pays a quarterly dividend of $0.22 per share for a dividend yield of 1.57%, as of August 21. It is among the best Warren Buffett dividend stocks on our list.

Warren Buffett initially invested in Occidental Petroleum Corporation (NYSE:OXY) in 2019, during the company’s search for financing to acquire Anadarko Petroleum. Since then, Berkshire has significantly increased its stake in OXY, leading some to speculate that Buffett might aim to acquire the entire company. During the second quarter of 2024, the hedge fund increased its stake in the company by 3% and now owns over 255 million OXY shares, worth over $16 billion. The company constituted 5.74% of the firm’s 13F portfolio.

At the end of the second quarter of 2024, 62 hedge funds held stakes in Occidental Petroleum Corporation (NYSE:OXY), up from 61 in the previous quarter. These stakes are collectively valued at over $18.5 billion.