Smart Investing: Three High Dividend Stocks to Buy Now
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy OXY?
Source: Fool
- Oil Price Rebound: Occidental Petroleum, despite being affected by recent Middle East conflicts, remains below its 2022 highs with a current market cap of $56 billion and a dividend yield of 1.7%; as oil prices rise, it is expected to generate outsized profits, enhancing portfolio resilience against inflation.
- Digital Banking Recovery: Ally Financial offers a 3.3% dividend yield; although it has not increased dividends in recent years due to rising interest rates, its net income is nearing $1 billion, and management plans to resume stock buybacks, which is likely to drive gradual dividend growth and attract long-term investors.
- Tobacco Industry Transformation: British American Tobacco boasts a 5.4% dividend yield and is actively expanding into new product categories like e-cigarettes and nicotine pouches, with revenue expected to grow 3% to 5% by 2026, positioning it as a strong cash generator in the future.
- Long-Term Investment Value: While Occidental Petroleum, Ally Financial, and British American Tobacco may not be as exciting as today's hottest AI stocks, their stable earnings power suggests they will be excellent dividend stocks for long-term investment portfolios.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy OXY?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on OXY
Wall Street analysts forecast OXY stock price to fall
16 Analyst Rating
4 Buy
9 Hold
3 Sell
Hold
Current: 57.250
Low
38.00
Averages
47.27
High
64.00
Current: 57.250
Low
38.00
Averages
47.27
High
64.00
About OXY
Occidental Petroleum Corporation is an international energy company with assets primarily in the United States, the Middle East and North Africa. The Company is an oil and gas producer in the United States, including a producer in the Permian and DJ basins, and the offshore Gulf of Mexico. It operates through three segments: oil and gas, chemical and midstream and marketing. The oil and gas segment explores for, develops, and produces oil (which includes condensate), natural gas liquids (NGL) and natural gas. The chemical segment primarily manufactures and markets basic chemicals and vinyls. The midstream and marketing segment purchases, markets, gathers, processes, transports, and stores oil (which includes condensate), NGL, natural gas, carbon dioxide (CO2) and power. The midstream and marketing segment provides flow assurance and maximizes the value of its oil and gas. It also optimizes its transportation and storage capacity and invests in entities that conduct similar activities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Smart Investing: Three High Dividend Stocks to Buy Now
- Oil Price Rebound: Occidental Petroleum, despite being affected by recent Middle East conflicts, remains below its 2022 highs with a current market cap of $56 billion and a dividend yield of 1.7%; as oil prices rise, it is expected to generate outsized profits, enhancing portfolio resilience against inflation.
- Digital Banking Recovery: Ally Financial offers a 3.3% dividend yield; although it has not increased dividends in recent years due to rising interest rates, its net income is nearing $1 billion, and management plans to resume stock buybacks, which is likely to drive gradual dividend growth and attract long-term investors.
- Tobacco Industry Transformation: British American Tobacco boasts a 5.4% dividend yield and is actively expanding into new product categories like e-cigarettes and nicotine pouches, with revenue expected to grow 3% to 5% by 2026, positioning it as a strong cash generator in the future.
- Long-Term Investment Value: While Occidental Petroleum, Ally Financial, and British American Tobacco may not be as exciting as today's hottest AI stocks, their stable earnings power suggests they will be excellent dividend stocks for long-term investment portfolios.
See More
Energy Stocks Surge Amid Geopolitical Tensions Following Khamenei's Death
- ExxonMobil's Strong Performance: ExxonMobil (XOM) achieved a record production of 4.7 million BOED in 2025, with a free cash flow of $26.13 billion, leading to a 25.35% stock price increase, while planning a $20 billion buyback in both 2025 and 2026, showcasing robust financial health and shareholder return capabilities.
- Chevron's Sustained Growth: Chevron (CVX) reached a full-year production of 3,723 MBOED in 2025, a 12% year-over-year increase, contributing 261 MBOED from the Hess acquisition, returning $27.10 billion to shareholders in 2025, and seeing a 23.26% stock price rise, reflecting strong market position and profitability.
- ConocoPhillips' Growth Potential: ConocoPhillips (COP) produced 2,320 MBOED in 2025, with management targeting $7 billion in incremental free cash flow by 2029, and a current dividend yield of 2.68%, indicating strong return potential in a rising oil price environment.
- Occidental's High-Risk, High-Reward Profile: Occidental Petroleum (OXY) saw a 30.37% year-to-date stock price increase, reducing debt by $5.8 billion to $15 billion through the sale of OxyChem, although its financial position is relatively weaker, it stands to benefit significantly from rising oil prices, with a current yield of 1.79%.
See More
Premarket Moves: Nvidia, Delta, Oil Stocks, Eli Lilly
- Nvidia Order Expectations: Nvidia's CEO Jensen Huang stated that orders for its Blackwell and Vera Rubin chips are expected to reach $1 trillion by 2027, leading to a slight increase in stock price, reflecting strong market confidence in future demand.
- Delta Air Lines Revenue Guidance Raised: Delta's shares rose over 4% after the company raised its first-quarter revenue growth guidance to high single digits from a previous forecast of 5% to 7%, indicating robust recovery momentum in the airline industry.
- Oil Stocks Rally: Oil stocks collectively rose as crude prices resumed their upward trend, with Exxon Mobil up about 1% and Occidental Petroleum gaining 1.4%, showcasing market optimism regarding energy demand despite doubts surrounding a U.S. escort plan for tankers.
- Eli Lilly Downgrade: Eli Lilly's stock fell 1.1% following an HSBC downgrade from hold, with analysts expressing concerns that the obesity drug market appears inflated, indicating apprehension about the company's future profitability trends.
See More
Iran-Russia Naval Drills Heighten Energy Supply Concerns
- Attacks on Energy Infrastructure: Amid the Iran war, a fresh wave of attacks on the UAE's energy infrastructure has heightened concerns over supply disruptions, particularly after a drone strike targeted the world's largest ultra-sour gas developments, directly impacting regional energy security.
- Shah Gas Field Shutdown: Abu Dhabi authorities reported that operations at the Shah gas field were suspended due to a drone attack, which has a production capacity of 1.28 billion standard cubic feet of gas per day, and this shutdown will significantly affect the UAE's energy supply.
- Surging Oil Prices: Due to ongoing supply disruptions, international Brent crude futures rose by 3.2% to $103.40 per barrel, with prices having surged approximately 40% during the U.S.-Iran war, indicating market uncertainty regarding future supply.
- Shipping Disruptions in Strait of Hormuz: Shipping traffic through the Strait of Hormuz has virtually ground to a halt since the U.S. and Israel launched strikes against Iran on February 28, with Iran retaliating against vessels attempting to navigate the corridor, further escalating tensions in the global energy market.
See More
Treasury Yields Rise Amid Middle East Tensions and Oil Price Surge
- Rising Treasury Yields: The benchmark 10-year Treasury yield increased by over 2 basis points to 4.239%, while the 30-year bond yield rose nearly 3 basis points to 4.887%, indicating investor concerns about market uncertainty that could impact future borrowing costs.
- Surge in Oil Prices: International benchmark Brent crude prices jumped 3.43% to $103.65 per barrel, and West Texas Intermediate rose 3.85% to $97.08 per barrel, reflecting the severity of global oil supply disruptions caused by Iranian attacks.
- Delay in US-China Meeting: President Trump announced a delay of about a month for his planned meeting with President Xi Jinping due to the ongoing war with Iran, which may affect the development of US-China relations and trade negotiations.
- Focus on Federal Reserve Policy: Investors are turning their attention to the Federal Reserve's policy meeting concluding on Wednesday, as expectations regarding future interest rate policies will directly influence the bond market and overall economic outlook.
See More
European Stocks Open Flat Amid Oil Price Volatility
- Market Opening: The UK's FTSE 100 is expected to open 0.1% higher, while Germany's DAX, France's CAC 40, and Italy's FTSE MIB are projected to remain flat, indicating cautious sentiment amid global economic uncertainties.
- Oil Price Fluctuations: WTI crude oil prices fell to just below $95 a barrel on Monday, down from over $100 at the weekend, reflecting market concerns over Middle East tensions and the impact of a U.S.-led coalition to escort ships.
- Central Bank Focus: As the U.S. Federal Reserve begins a two-day policy meeting on Tuesday, market attention intensifies on interest rate decisions; despite pressure from Trump to lower rates, the ongoing conflict with Iran leads to expectations of a hold on rates.
- Asian Market Performance: Asian markets broadly rose overnight, indicating differing investor sentiment regarding global economic prospects, while U.S. stock futures dipped slightly, reflecting a divergence in market emotions.
See More
Smart Investing: Three High Dividend Stocks to Buy Now
- Oil Price Rebound: Occidental Petroleum, despite being affected by recent Middle East conflicts, remains below its 2022 highs with a current market cap of $56 billion and a dividend yield of 1.7%; as oil prices rise, it is expected to generate outsized profits, enhancing portfolio resilience against inflation.
- Digital Banking Recovery: Ally Financial offers a 3.3% dividend yield; although it has not increased dividends in recent years due to rising interest rates, its net income is nearing $1 billion, and management plans to resume stock buybacks, which is likely to drive gradual dividend growth and attract long-term investors.
- Tobacco Industry Transformation: British American Tobacco boasts a 5.4% dividend yield and is actively expanding into new product categories like e-cigarettes and nicotine pouches, with revenue expected to grow 3% to 5% by 2026, positioning it as a strong cash generator in the future.
- Long-Term Investment Value: While Occidental Petroleum, Ally Financial, and British American Tobacco may not be as exciting as today's hottest AI stocks, their stable earnings power suggests they will be excellent dividend stocks for long-term investment portfolios.
See More
Energy Stocks Surge Amid Geopolitical Tensions Following Khamenei's Death
- ExxonMobil's Strong Performance: ExxonMobil (XOM) achieved a record production of 4.7 million BOED in 2025, with a free cash flow of $26.13 billion, leading to a 25.35% stock price increase, while planning a $20 billion buyback in both 2025 and 2026, showcasing robust financial health and shareholder return capabilities.
- Chevron's Sustained Growth: Chevron (CVX) reached a full-year production of 3,723 MBOED in 2025, a 12% year-over-year increase, contributing 261 MBOED from the Hess acquisition, returning $27.10 billion to shareholders in 2025, and seeing a 23.26% stock price rise, reflecting strong market position and profitability.
- ConocoPhillips' Growth Potential: ConocoPhillips (COP) produced 2,320 MBOED in 2025, with management targeting $7 billion in incremental free cash flow by 2029, and a current dividend yield of 2.68%, indicating strong return potential in a rising oil price environment.
- Occidental's High-Risk, High-Reward Profile: Occidental Petroleum (OXY) saw a 30.37% year-to-date stock price increase, reducing debt by $5.8 billion to $15 billion through the sale of OxyChem, although its financial position is relatively weaker, it stands to benefit significantly from rising oil prices, with a current yield of 1.79%.
See More
Premarket Moves: Nvidia, Delta, Oil Stocks, Eli Lilly
- Nvidia Order Expectations: Nvidia's CEO Jensen Huang stated that orders for its Blackwell and Vera Rubin chips are expected to reach $1 trillion by 2027, leading to a slight increase in stock price, reflecting strong market confidence in future demand.
- Delta Air Lines Revenue Guidance Raised: Delta's shares rose over 4% after the company raised its first-quarter revenue growth guidance to high single digits from a previous forecast of 5% to 7%, indicating robust recovery momentum in the airline industry.
- Oil Stocks Rally: Oil stocks collectively rose as crude prices resumed their upward trend, with Exxon Mobil up about 1% and Occidental Petroleum gaining 1.4%, showcasing market optimism regarding energy demand despite doubts surrounding a U.S. escort plan for tankers.
- Eli Lilly Downgrade: Eli Lilly's stock fell 1.1% following an HSBC downgrade from hold, with analysts expressing concerns that the obesity drug market appears inflated, indicating apprehension about the company's future profitability trends.
See More
Iran-Russia Naval Drills Heighten Energy Supply Concerns
- Attacks on Energy Infrastructure: Amid the Iran war, a fresh wave of attacks on the UAE's energy infrastructure has heightened concerns over supply disruptions, particularly after a drone strike targeted the world's largest ultra-sour gas developments, directly impacting regional energy security.
- Shah Gas Field Shutdown: Abu Dhabi authorities reported that operations at the Shah gas field were suspended due to a drone attack, which has a production capacity of 1.28 billion standard cubic feet of gas per day, and this shutdown will significantly affect the UAE's energy supply.
- Surging Oil Prices: Due to ongoing supply disruptions, international Brent crude futures rose by 3.2% to $103.40 per barrel, with prices having surged approximately 40% during the U.S.-Iran war, indicating market uncertainty regarding future supply.
- Shipping Disruptions in Strait of Hormuz: Shipping traffic through the Strait of Hormuz has virtually ground to a halt since the U.S. and Israel launched strikes against Iran on February 28, with Iran retaliating against vessels attempting to navigate the corridor, further escalating tensions in the global energy market.
See More
Treasury Yields Rise Amid Middle East Tensions and Oil Price Surge
- Rising Treasury Yields: The benchmark 10-year Treasury yield increased by over 2 basis points to 4.239%, while the 30-year bond yield rose nearly 3 basis points to 4.887%, indicating investor concerns about market uncertainty that could impact future borrowing costs.
- Surge in Oil Prices: International benchmark Brent crude prices jumped 3.43% to $103.65 per barrel, and West Texas Intermediate rose 3.85% to $97.08 per barrel, reflecting the severity of global oil supply disruptions caused by Iranian attacks.
- Delay in US-China Meeting: President Trump announced a delay of about a month for his planned meeting with President Xi Jinping due to the ongoing war with Iran, which may affect the development of US-China relations and trade negotiations.
- Focus on Federal Reserve Policy: Investors are turning their attention to the Federal Reserve's policy meeting concluding on Wednesday, as expectations regarding future interest rate policies will directly influence the bond market and overall economic outlook.
See More
European Stocks Open Flat Amid Oil Price Volatility
- Market Opening: The UK's FTSE 100 is expected to open 0.1% higher, while Germany's DAX, France's CAC 40, and Italy's FTSE MIB are projected to remain flat, indicating cautious sentiment amid global economic uncertainties.
- Oil Price Fluctuations: WTI crude oil prices fell to just below $95 a barrel on Monday, down from over $100 at the weekend, reflecting market concerns over Middle East tensions and the impact of a U.S.-led coalition to escort ships.
- Central Bank Focus: As the U.S. Federal Reserve begins a two-day policy meeting on Tuesday, market attention intensifies on interest rate decisions; despite pressure from Trump to lower rates, the ongoing conflict with Iran leads to expectations of a hold on rates.
- Asian Market Performance: Asian markets broadly rose overnight, indicating differing investor sentiment regarding global economic prospects, while U.S. stock futures dipped slightly, reflecting a divergence in market emotions.
See More
