Warren Buffett Is Getting a Big Raise From This Oil Stock
Warren Buffett makes a lot of money from dividend income. His company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), collects more than $6 billion from dividends each year.
Buffett's dividend income is about to head even higher. That's after one of his largest holdings, oil giant Occidental Petroleum (NYSE: OXY), increased its dividend payment by another 38%. Here's a closer look at what's fueling Occidental's dividend increase and how it will impact Buffett's dividend income.
Occidental Petroleum has come a long way in recent years. The oil giant made an ill-timed and expensive acquisition of Anadarko Petroleum in 2019 with the help of Warren Buffett to win the bidding over oil behemoth Chevron (NYSE: CVX). That deal saddled it with a lot of debt right before oil prices collapsed in 2020. It forced the company to take several actions to stay afloat, including slashing its dividend payment by nearly 99% from $0.79 per share each quarter all the way down to $0.01 per share. The company used that cash to help chip away at its debt.
Source Fool.com
