Occidental Will Survive, For Now
- Occidental continues to hold up well due to a strong balance sheet.
- The company still needs to work on improving cash flows to ensure the dividend can survive the current oil price slump.
- The stock has more downside risk with cash flows in the current negative position.
With the cutting of the dividend by ConocoPhillips (NYSE:COP),
all of the major oil companies are under extra scrutiny now. Dividends
that were previously unquestioned will now need cash flows to justify
paying them going forward.
Read the full article at Seeking Alpha.
Disclosure: No position mentioned. Please review the disclaimer page for more details.
Comments