OXY dividend: payout, cash coverage and yield
OXY pays $0.28 per share each quarter, or $1.12 per share annually. Its cash coverage depends on whether cash from operations remains after capital spending and stock pay.
How much does OXY pay in dividends?
Berkshire’s preferred shares still sit ahead of common shareholders. Oxy paid a preferred-stock dividend in 2025, cannot voluntarily redeem those shares before August 2029, and faces redemption consequences if common payouts exceed specified limits. In August 2026, Oxy raised its quarterly common dividend to $0.28 per share, but management still ranked debt reduction ahead of continuous buybacks. The cash story therefore leads directly to CrownRock: growth returned before the balance sheet was fully repaired.
Dividends stay at $1.12 per share annually in the base case because the declared quarterly rate is $0.28 and no longer-term target exists. The bear case falls to $0.84, then $0.56, after a cut; the bull case rises to $1.20 and $1.28 as cash improves. The history of cuts after the 2020 collapse makes the downside possible.
Does OXY’s cash cover its dividend?
The simplest free-cash-flow calculation subtracts capital spending from cash from operations. Stock-based compensation then deserves separate attention: it does not consume cash like a salary, but it can dilute owners, so this memo’s “real free cash flow” subtracts it.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 3,179 | 4,256 | 4,539 | ||
| − Dividends paid | 915 | 767 | 603 | 384 | 39 |
| − Share buybacks | 0 | 27 | 1,798 | 3,099 | 8 |
| = Free cash flow not paid out | 2,264 | 3,462 | 2,138 | ||
| Paid out, % of free cash flow | 28.8% | 18.7% | 52.9% |
What this means. The acquisition amounts also include purchases of assets and investments, so they are not just money spent buying whole businesses.
What could change OXY’s dividend?
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| EBITDA | 13,400 (8,800 / 16,500) | 12,800 (8,100 / 17,300) | 12,500 (8,200 / 18,200) |
| Dividends per share | 1.12 (0.84 / 1.12) | 1.12 (0.56 / 1.20) | 1.12 (0.56 / 1.28) |
| Net debt | 4,989 (7,954 / 2,956) | 949 (6,526 / -3,997) | -3,008 (4,986 / -11,773) |
What this means. The negative net debt numbers mean the company would have more cash than borrowed money, so it would have net cash.
What is OXY’s dividend yield today?
Production rose while liquids realizations weakened, so higher output did not guarantee stronger economics. OXY’s real free cash flow per share, computed as cash from operations minus capital spending and stock pay, fell from 2023 through 2025 even as total production grew. Year-end 2025 net debt was $20,428 million. The dividend yield was 1.8%, while buyback yield was 0.0%.
Dividend yield shows what the regular payout amounts to at today’s price; it does not prove that the payout will survive a weaker oil cycle. Common shareholders also rank behind debt and Berkshire Hathaway’s preferred stock. Berkshire holds warrants for 83.9 million shares. Their $59.59 strike was below OXY’s October 18, 2026 share price, so exercise is economically attractive and could dilute each existing owner’s percentage.
| Today (Oct 18, 2026) | |
|---|---|
| Share price | 62.38 |
| Free cash flow yield (calculated) | 5.1% |
| Dividend yield (calculated) | 1.8% |
What this means. The enterprise value leaves out the separate preferred stock claim, so it may make the business look less expensive than all investors’ claims together.