Occidental Petroleum (OXY) 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 24% over the last ten years. Dividends grew at a lesser rate (10%) though they are expected to rise to an 11% 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) the company’s expertise in enhanced oil recovery techniques,
(3) acquisitions,
(4) resumption of operations in Libya,
(5) improving profit margins,
(6) stock buyback program.
