McDonald’s Corporation (MCD), Occidental Petroleum Corporation (OXY): Billionaire Richard Chilton’s High-Yielders

According to the 13F, the fund owned about 590,000 shares of Occidental Petroleum Corporation (NYSE:OXY). The oil major trades at 11 times forward earnings estimates, which actually represents a premium to some of its peers as large oil companies are generally trading cheaply. Occidental Petroleum Corporation (NYSE:OXY)’s net income was down nearly 80% in its last quarterly report compared to the fourth quarter of 2011 as well, and even though there is a 3.2% dividend yield the stock is dependent on commodity prices (and macro activity more generally). Billionaire oilman T. Boone Pickens initiated a position during Q4 (research more stocks Pickens was buying).

Chilton and his team also included Chevron Corporation (NYSE:CVX) among their higher-yield investments, though they had been selling shares during the quarter. Fisher Asset Management, managed by billionaire Ken Fisher, was another major shareholder of Chevron Corporation (NYSE:CVX) (here are more stocks Fisher likes). Chevron Corporation (NYSE:CVX) is one of the oil majors which is priced at a discount to Occidental Petroleum Corporation (NYSE:OXY); in fact, it is valued at 9 times its trailing earnings. We would note that while net income did increase by over 40% in its most recent quarter compared to the same period in the previous year, revenue fell slightly; however, it does look worthy of further research.

Disclosure: I own no shares of any stocks mentioned in this article.