Occidental Petroleum (NYSE: OXY) has finally gotten back on track this year, largely thanks to surging oil prices. The company produced a record $4.2 billion of free cash flow in the second quarter. That enabled the oil giant to pay off more debt, positioning it to start returning more cash to shareholders.

The company expects to send a significant amount of cash to its investors over the coming years through share repurchases and a rapidly rising dividend. That will make it a more compelling option for dividend-focused investors.

Occidental Petroleum has been working hard to reduce debt following its acquisition of Anadarko Petroleum in 2019. It sold assets, slashed its dividend payment, and suspended its share repurchase program to allocate more cash toward debt reduction. The company set a goal to pay off another $5 billion of debt this year.

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Source Fool.com