Occidental
Petroleum produces and markets crude oil and natural gas, manufactures
industrial chemicals, plastics and fertilizer and transports natural gas
through pipelines. The company has grown profits at a 17% over the last ten
years. Dividends grew at a lesser rate (12%) though they are expected to rise
to a 14% pace. OXY ’s return on equity has
been in the 11-20% range. The company should continue to grow dividends and
earnings as a result of:
(1) rising
production from new properties,
(2) divesting
non core assets,
(3)
acquisitions,
(4)
improving profit margins,
(5) stock buyback program.
Negatives:
(1) OXY
earnings are very levered to the price of crude oil,
(2) political
instability remains a major threat to earnings,
(3) highly
competitive industry.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2003
Debt/ EPS Down Net Value Line
Equity ROE Since 2003 Margin Rating
Chart
Note:
OXY stock made good initial progress off its
November 2008 low, quickly surpassing the downtrend off its May 2008 high (red
line) and the November 2008 trading high (green line). In mid 2012, OXY
broke its long term uptrend, re-setting to a trading range (straight blue
lines). The wiggly blue line is on
balance volume. The Dividend Growth
Portfolio owns a full position in OXY . The upper boundary of its Buy
Value Range Sell
Half Range
4/13
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