A portfolio of stocks I've been building since September 3 is named Volio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the second of five energy sector stocks striving to join my Volio folio. This could be my twenty-seventh pick for Volio!
That energy sector includes six industries all related to bringing oil and gas to market. They are: drilling, exploration and production (E&P), equipment and services, integrated, midstream, refining & marketing. (Those six oily and gassy enterprises.)
My subject today is a large-cap oil and gas exploration and production operation named, Occidental Petroleum Corp. Their trading ticker symbol is OXY. This is my first report about Occidental Petroleum Corp.
- Occidental Petroleum is an independent exploration and production company with operations in the United States, Latin America, and the Middle East. At the end of 2018, the company reported net proven reserves of 2.8 billion barrels of oil equivalent. Net production averaged 658 thousand barrels of oil equivalent per day in 2018, at a ratio of 77% oil and natural gas liquids and 23% natural gas.
- The company has strategic partnership with Ecopetrol S.A.
Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.
I use three key data points to gauge dividend equities or funds like Occidental Petroleum Corp :
(1) Price
(2) Dividends
(3) Returns
Besides these three, several other keys will finally determine if a particular equity or fund is one in which to invest, or not.
These three basic keys, however, best tell whether a company has made, is making, and will continue to make money.
OXY Price
Occidental's price per share closed at $39.55 Yesterday. A year ago its price was $66.23. So, in the past year its market price fell $26.68, or over 40%.
Assuming Occidental's stock trades in the range of $30 to $60 this next year, its recent $39.55 price could rise by $9.45 to reach $50.00 by February 25, 2021, assuming upward price momentum returns.
OXY Dividends
Occidental's latest declared quarterly dividend was $0.79 payable April 15. That $0.79 Q dividend equates to an annual payout of $3.16 and yields 7.99% at yesterday's $39.55 share price.
OXY Gains?
Adding the $3.16 annual estimated dividend to my $9.46 estimate of Occidental Petroleum Corp (OXY) price upside shows a $12.62 potential gross gain, per share, which will be reduced by any costs to trade those shares.
Say we put a little under $1,000.00 today in Occidental Petroleum Corp at its recent $39.55 price, would buy 25 shares of OXY.
A $10 broker fee paid half at purchase and half at sale would cost us $0.40 per share. Subtracting the $0.40 brokerage cost from the estimated $12.62 gross estimated gain per share leaves a net gain of $12.22 X 25 shares = $305.50 or a 30.55% net gain on a $988.75 investment. Therefore, Occidental Petroleum Corp, shows a possible 30.55% net gain including a 7.99% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to ascertain if Occidental Petroleum Corp, is worth your time and money.
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