Welcome to MutualFunds.com. Please help us personalize your experience.

Select the one that best describes you

Your personalized experience is almost ready.

Join other Individual Investors receiving FREE personalized market updates and research. Join other Institutional Investors receiving FREE personalized market updates and research. Join other Financial Advisors receiving FREE personalized market updates and research.

Thank you!

Check your email and confirm your subscription to complete your personalized experience.

Thank you for your submission, we hope you enjoy your experience

Occidental Petroleum Corporation logo

News

What Today's Occidental Petroleum Upgrade Means for Mutual Fund Investors (OXY)

Shauna O'Brien Dec 15, 2014



According to Sterne Agee: “With a 3.9% yield, a balance sheet many integrateds would envy, and an active repurchase program, OXY shares are a compelling opportunity in today’s uncertain E&P landscape. Questions abound on when investors will come back into E&Ps, but we know one buyer of E&Ps – Occidental, which has a 76 million share repurchase program and just raised $8.55 billion (after tax). Proceeds bolster a pristine balance sheet, leading us to believe continued dividend growth is likely, despite the loss of CF from the CRC spin. Oil-related share price weakness could accelerate near-term share repurchases.”


Dividend Growth and Payout Ratio


As it stands now, the dividend payout ratio is currently 45.6%. The key thing to know here is that EPS will undoubtedly be lower, which means the current payout ratio will probably increase.


Mutual Funds to Watch



The Bottom Line


Shares of OXY are down 22% YTD.

Download Our Free Report

Why 30 trillion is invested in mutual funds book