If Occidental Petroleum Hikes Its Dividend as Expected, OXY Stock Could Rally

Core Viewpoint - Occidental Petroleum (OXY) is expected to release its Q4 earnings on February 19, with potential for a dividend per share increase, which could positively impact OXY stock price [1][3]. Dividend Increase Potential - Occidental has consistently raised its dividend per share (DPS) over the last four years, with a 9% annual increase from 88 cents to 96 cents last year [4]. - A conservative estimate suggests a 4.16% increase to $1.00 per share this year, which could elevate the stock value to $50.00, representing a 17% increase from the recent closing price of $42.70 [3][4]. Financial Capability - Analysts project Occidental to earn at least $2.27 per share this year, which would comfortably cover the anticipated dividend increase [5]. - The company's free cash flow (FCF) for the year, as of Q3, was reported at $2.375 billion, with cash dividends paid out amounting to $1.186 billion, resulting in a payout ratio of less than 50% [6][7]. Current Stock Performance - OXY stock currently has an annual dividend yield of 2.248%, with historical averages being lower at 1.12% over five years and 2.18% over the last 12 months [8].