Here’s How Much Warren Buffett Earns In Dividends Annually From Occidental Petroleum (OXY)

Warren Buffett, widely regarded as the greatest investor of all time, has built incredible wealth for himself and early shareholders of Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B) by buying great companies at fair prices and holding for the long term. He once famously said, “Our favorite holding period is forever.”

One of Berkshire’s key energy investments is Occidental Petroleum (NYSE: OXY), a major player in the oil and gas industry. Buffett first invested in Occidental in 2019 through preferred shares to support its acquisition of Anadarko Petroleum and began aggressively buying its common stock in early 2022. Since then, Berkshire has steadily increased its position, now owning just over 28% of Occidental’s outstanding shares.

Berkshire’s stake in Occidental Petroleum

Berkshire Hathaway currently owns 264,941,431 shares of Occidental Petroleum, valued at approximately $12.5 billion. The position represents about 4.5% of Berkshire’s portfolio, making it its sixth-largest position behind Apple (Nasdaq: AAPL), American Express (NYSE: AXP), Coca-Cola Co. (NYSE: KO), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX).

In his 2023 letter to Berkshire shareholders, Buffett commented on its significant investment in Occidental:

“We particularly like its vast oil and gas holdings in the United States, as well as its leadership in carbon-capture initiatives, though the economic feasibility of this technique has yet to be proven. Both of these activities are very much in our country’s interest.”

How much does Berkshire earn in dividends?

Occidental Petroleum currently pays a quarterly dividend of $0.24 per share, which amounts to an annualized dividend of $0.96 per share and gives its stock a yield of about 2% at the time of this writing. To determine Berkshire Hathaway’s annual dividend income from Occidental, we simply multiply the number of shares it owns by the annual dividend per share:

Shares of Occidental owned: 264,941,431

Annual dividend per share: $0.96

Total annual dividend: 264,941,431 × $0.96 = $254,343,774

Berkshire Hathaway will receive just over $254.3 million in dividends from its stake in Occidental in 2025 based on its current dividend rate. This equates to about $63.59 million per quarter or approximately $695,000 per day.

Recent growth, but past issues

Occidental Petroleum’s dividend history is far from perfect. The company had a lengthy streak of annual dividend increases leading into 2020 when it had to cut its dividend to just a penny per share to conserve cash and manage its debt load after the Covid-19 pandemic crushed global oil demand.

Fortunately for shareholders, Occidental has steadily grown its dividend in the years since. It has raised its dividend each of the last three years, and its 9.1% hike last month has it on track for 2025 to mark the fourth consecutive year with an increase. With continued growth in its business and improvement in capital efficiency, Occidental is well-positioned to deliver significant dividend-growth to its shareholders going forward.

How much could you earn with a $10,000 stake in Occidental?

Investors of all sizes can benefit from Occidental’s dividends. At a market price of approximately $47 per share, a $10,000 investment would buy about 213 shares of the company.

With an annual dividend of $0.96 per share, that investment would generate about $204.48 per year in passive income. If you opted to reinvest those dividends and Occidental were to continue growing its annual dividend, you could increase your returns over time.

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