Occidental Petroleum Stock Has Tanked - But It May Hike Its Dividend - Time to Buy?

Core Viewpoint - Occidental Petroleum Corp (OXY) is expected to increase its dividend in late January or early February, with a potential target price of $50 per share based on its average dividend yield, indicating a possible upside of over 25% from its current trading price of $39.77 [1][3]. Dividend Information - OXY's stock price has decreased from $48.10 on September 29 to $39.77, but has shown some recovery from a low of $38.92 on December 16 [1]. - The company has consistently raised its dividend per share (DPS) after maintaining the same DPS for four quarters, which it has done as of November 5 [4]. - A proposed increase in DPS to $1.00 represents a 4.2% rise, which is lower than the previous year's 9% increase from 84 cents to 96 cents [4]. Valuation and Yield Analysis - The average dividend yield for OXY over the last 12 months is 2.33%, while the current yield at $39.77 is approximately 2.414% [5]. - Historical data shows that OXY's dividend yield has fluctuated between 1.16% and 2.38% over the past five years [5]. - Assuming a conservative estimate of a 2.0% dividend yield, if OXY raises its DPS to $1.00, the target price could reach $50.00, reflecting a mean reversion effect [6].