OXY Dividend

Occidental Petroleum Corporation dividend

Although OXY has a dividend of 0.22 with an ex-dividend date of Dec 10, you can sell covered calls on Occidental Petroleum Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:05 AM ET):

Occidental Petroleum Corporation (OXY)
Bid Ask Last Change Volume P/E Market Cap
50.89 50.90 50.89 +0.39 920K 13 47B

OXY Dividend-Like Income Using Covered Calls

With OXY at 50.89, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 1.53 0.4
5% 2.54 0.7
10% 5.09 1.4

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On OXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 51.00 1.16 17 6.8 0.10 (0.2%)
Dec 13 51.00 1.33 24 5.5 0.10 (0.2%)
5% Yield On OXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 51.00 1.16 17 6.8 0.10 (0.2%)
Dec 13 51.00 1.33 24 5.5 0.10 (0.2%)
10% Yield On OXY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 51.00 1.16 17 6.8 0.10 (0.2%)
Dec 13 51.00 1.33 24 5.5 0.10 (0.2%)

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