We recently published a list of Top Dividend Stocks to Buy in 2024 According to Billionaire Paul Tudor Jones. Since Occidental Petroleum Corp (NYSE:OXY) ranks 7th in the list, it deserves a deeper look.
Billionaire Paul Tudor Jones recently made headlines after he participated in the Robin Hood foundation’s fundraising event dressed as Neo from the movie “The Matrix.” The event raised $68.5 million. The billionaire, who founded Tudor Investment Corporation in 1980, couldn’t help himself but talk about investing during the event, and highlighted the importance of “Warren Buffett-style compounding.”
“Somewhere, somehow the multiplicative power of compound put you in this seat,” Tudor Jones said.
During an interview last year, the billionaire had predicted that a recession was expected to start in the first quarter of 2024. He said at the time that the US was in its “weakest position” since World War II. However, the market rally fueled by AI proved the prediction wrong. Earlier this year, Jones said in another interview that the financial markets represent people’s ideas and what they make of the economic situation. Paul Tudor Jones said that there’s a chance the stock market would be “here or lower” in the next five to ten years. However, the billionaire also said it’s possible that the markets would go higher from here if the next President of the US devises a better “policy response” next year.
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He’s been vocal about AI lately and sharing his thoughts about the impact of technology on our society. He thinks AI could be the “knight on the horse that rides and saves us.”
But AI-related threats worry Paul Tudor Jones. In an interview in January he referred to a survey where close to 3,000 AI experts were asked whether they believe AI would end humanity. According to Jones, a whopping 58% of the experts said yes. The billionaire said US policymakers will have to decide how to tackle this problem. Jones believes AI is growing at an “unbridled pace” since there’s so much money to be made in the domain but the biggest problem for policymakers would be to balance the benefits and threats of AI to make it sustainable.
For this article we scanned billionaire Paul Tudor Jones’ Q1 portfolio and chose his top dividend stock picks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Occidental Petroleum Corp (NYSE:OXY)
Billionaire Paul Tudor Jones Q1’2024 Stake: $45,974,706
Occidental Petroleum Corp (NYSE:OXY) has a dividend yield of about 1.4% as of June 3, and Occidental Petroleum Corp (NYSE:OXY) has maintained a consistent dividend payment record since 1985. Last month, Morgan Stanley published a list of stocks it believes are suitable for investors to survive the current economic volatility. The firm recommended Occidental Petroleum Corp (NYSE:OXY) as a high-quality growth stock. In December 2023 Occidental Petroleum Corp (NYSE:OXY) made headlines after announcing it would buy CrownRock for a whopping $12 billion. The deal would add 170 thousand barrels/day in production for Occidental Petroleum Corp (NYSE:OXY).
Warren Buffett having over $16.1 billion worth of stake in Occidental Petroleum Corp (NYSE:OXY) would be a huge confidence booster for both current and prospective investors for Occidental Petroleum Corp (NYSE:OXY). But Wall Street has many other reasons to call this stock a buy. Occidental Petroleum Corp (NYSE:OXY) expects to increase its FCF by $1 billion by the second half of 2026. Analysts also believe the CrownRock deal would add about 170 mboed of high-margin, lower-decline unconventional production from the Midland Basin. Based on Wall Street’s average price target of $71 for OXY, the stock has an upside potential of about 15% from its current levels.
Overall, Occidental Petroleum Corp (NYSE:OXY) ranks 7th in Insider Monkey’s list of Top Dividend Stocks to Buy in 2024 According to Billionaire Paul Tudor Jones. You can visit Top Dividend Stocks to Buy in 2024 According to Billionaire Paul Tudor Jones to see other stock picks of Billionaire Paul Tudor Jones. While we acknowledge the potential of Occidental Petroleum Corp (NYSE:OXY), our conviction lies in the…
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