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Is NYSE:DVN suited for dividend investing?

By Mill Chart

Last update: Nov 13, 2023

Our stock screener has spotted DEVON ENERGY CORP (NYSE:DVN) as a good dividend stock with solid fundamentals. NYSE:DVN shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Dividend Analysis for NYSE:DVN

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:DVN has been assigned a 7 for dividend:

  • With a Yearly Dividend Yield of 6.29%, DVN is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 7.85, DVN pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 2.74, DVN pays a better dividend.
  • On average, the dividend of DVN grows each year by 84.16%, which is quite nice.
  • DVN has paid a dividend for at least 10 years, which is a reliable track record.
  • As DVN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.

Health Assessment of NYSE:DVN

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:DVN has earned a 5 out of 10:

  • DVN has an Altman-Z score of 3.36. This indicates that DVN is financially healthy and has little risk of bankruptcy at the moment.
  • DVN's Altman-Z score of 3.36 is fine compared to the rest of the industry. DVN outperforms 76.96% of its industry peers.
  • DVN has a debt to FCF ratio of 2.25. This is a good value and a sign of high solvency as DVN would need 2.25 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.25, DVN is in the better half of the industry, outperforming 68.20% of the companies in the same industry.
  • Even though the debt/equity ratio score it not favorable for DVN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

How do we evaluate the Profitability for NYSE:DVN?

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:DVN has earned a 6 out of 10:

  • With an excellent Return On Assets value of 19.70%, DVN belongs to the best of the industry, outperforming 80.18% of the companies in the same industry.
  • DVN's Return On Equity of 41.03% is amongst the best of the industry. DVN outperforms 81.57% of its industry peers.
  • DVN has a better Return On Invested Capital (26.44%) than 87.10% of its industry peers.
  • DVN's Profit Margin has improved in the last couple of years.
  • DVN's Operating Margin has improved in the last couple of years.

More Best Dividend stocks can be found in our Best Dividend screener.

Check the latest full fundamental report of DVN for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

Back

DEVON ENERGY CORP

NYSE:DVN (2/26/2024, 7:04:00 PM)

Premarket: 43.76 -0.07 (-0.16%)

43.83

-0.05 (-0.11%)

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