Yield Hunters Find Occidental Dividend Boost (OXY, XOM, CVX)

Occidental Petroleum Corporation (NYSE: OXY) has just raised its dividend to be a bit more competitive against Exxon Mobil Corporation (NYSE: XOM) with a 2.2% yield and against Chevron Corporation (NYSE: CVX) with a yield of close to 3%.  While the exploration and production giant may be a bit different from the larger integrated oil giants, Occidental is still valued at $84 billion.

Occidental’s dividend hike is by 17% and the new annualized rate of $2.16 per share generates a yield of just over 2.05% rather than being closer to 1.8%.  The company is claiming that this generates a compounded annual dividend growth rate over the last 10 years of 15.8%.  This is the eleventh increase in the last ten years and the total payout rate is said to be 332% higher than in 2002.

The company noted a rising production and “well-above-average returns on capital” are part of the long-term strategy for it to achieve “top-quartile total shareholder returns” in its sector.

Today’s higher dividend declaration is payable on April 15 to holders of record as of March 9, 2012.

Shares are currently only up 0.7% at $104.56 but its 52-week trading range is $66.36 to $117.89.