"Warren Buffett has never chased yield for its own sake. He simply asks three questions before he buys. Does the company earn high returns on capital without needing a mountain of debt? Can it fend off competitors for decades? And will management send the excess cash back to owners instead of building an empire of vanity projects? When the answer is yes, the dividend almost takes care of itself."
"Occidental Petroleum (OXY) is an oil and gas exploration and production company. Warren Buffett has bought the stock in 9 of the previous 15 quarters. He has been buying through thick and thin, even though the share price hasn't moved in his favor. Buffett has received approval to potentially acquire up to 50% of the company. This company has significant U.S. oil and gas holdings in the Permian Basin, and having a stake in it goes hand-in-hand with Buffett's principle of never betting against America. Buffett has repeatedly praised CEO Vicki Hollub's leadership, stating she is "running the company the right way" by prioritizing profits over production. In his annual letter to shareholders, Buffett wrote: "Under Vicki Hollub's leadership, Occidental is doing the right thi"
Warren Buffett avoids chasing yield and prioritizes companies that earn high returns on capital without heavy debt, can defend against competitors for decades, and return excess cash to owners. Buffett has maintained quality dividend stocks as potential "forever holdings" and has been a net seller for eleven consecutive quarters while selectively adding to certain positions. Buffett has consistently added to Occidental Petroleum, buying the stock in nine of the last fifteen quarters and obtaining approval to potentially acquire up to 50% of the company. Buffett has praised CEO Vicki Hollub for prioritizing profits over production and running the company the right way.
Read at 24/7 Wall St.
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