Cash-strapped Occidental will pay Warren Buffett’s $200 million dividend in stock as the oil market melts down
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- Occidental Petroleum will paying Berkshire Hathaway its $200 million quarterly dividend in discounted stock instead of cash, according to a Wednesday regulatory filing.
- Warren Buffett’s holding company helped finance Occidental’s $38 billion acquisition of a rival firm. In turn, Berkshire received $10 billion in the oil producer’s stock with a heft 8% dividend yield.
- Paying the sum in stock allows Occidental to maintain cash flow amid a sharp market downturn. The company has recently endured an oil-market war that pushed prices to 18-year lows.
- The coronavirus is projected to drag global demand by a record amount in 2020, further harming Occidental’s financial health.
- Watch Occidental trade live here.
Warren Buffett’s holding company helped Occidental purchase a rival business in 2019 for $38 billion, buying up $10 billion in Occidental shares with a lofty 8% dividend yield. For the oil company’s first-quarter payment, Occidental chose to pay out the sum …continued .
[Source: Business Insider]