Is NYSE:DVN suited for dividend investing?

DEVON ENERGY CORP (NYSE:DVN) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:DVN demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

How We Gauge Dividend for NYSE:DVN

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:DVN scores a 7 out of 10:

• DVN has a Yearly Dividend Yield of 6.58%, which is a nice return.
• DVN's Dividend Yield is a higher than the industry average which is at 7.16.
• Compared to an average S&P500 Dividend Yield of 2.45, DVN pays a better dividend.
• The dividend of DVN is nicely growing with an annual growth rate of 84.16%!
• 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 3.27. This indicates that DVN is financially healthy and has little risk of bankruptcy at the moment.
• DVN has a Altman-Z score of 3.27. This is in the better half of the industry: DVN outperforms 76.85% 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.
• DVN has a Debt to FCF ratio of 2.25. This is in the better half of the industry: DVN outperforms 68.52% of its industry peers.
• 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.

Profitability Assessment of NYSE:DVN

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:DVN, the assigned 6 is a significant indicator of profitability:

• With a decent Return On Assets value of 19.70%, DVN is doing good in the industry, outperforming 79.17% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 41.03%, DVN belongs to the top of the industry, outperforming 81.94% of the companies in the same industry.
• DVN has a Return On Invested Capital of 26.44%. This is amongst the best in the industry. DVN outperforms 87.96% of its industry peers.
• In the last couple of years the Profit Margin of DVN has grown nicely.
• DVN's Operating Margin has improved in the last couple of years.

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

Our latest full fundamental report of DVN contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.