Occidental Petroleum Corp (OXY) is set to release Q4 earnings on February 19, potentially increasing its dividend per share. With the stock currently at $42.70, up from a recent low of $38.92, investors could see gains. Shorting out-of-the-money OXY puts could yield almost 1.5%.

Analysts expect OXY to increase its dividend per share by 4.16% to $1.00 on Feb. 19, potentially boosting the stock to $50. Occidental has a history of raising dividends annually, with cash flow covering its payouts. This move could see OXY stock rise 17%.

To capitalize on the potential dividend hike, shorting out-of-the-money OXY puts could be a profitable strategy. For example, selling the Feb. 20, 2026, $40.00 put contract could yield 1.475%, providing a safety net in case of stock price fluctuations. This strategy aligns with OXY’s expected yield and analyst price targets.

Read more at Barchart: If Occidental Petroleum Hikes Its Dividend as Expected, OXY Stock Could Rally