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Why the dividend investor may take a look at NYSE:DVN.

By Mill Chart

Last update: Apr 11, 2024

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.

Dividend Assessment of NYSE:DVN

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:DVN was assigned a score of 7 for dividend:

  • With a Yearly Dividend Yield of 4.61%, DVN is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 5.81, DVN pays a bit more dividend than its industry peers.
  • DVN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
  • On average, the dividend of DVN grows each year by 56.62%, which is quite nice.
  • DVN has been paying a dividend for at least 10 years, so it has a reliable track record.
  • DVN pays out 39.25% of its income as dividend. This is a sustainable payout ratio.

Evaluating Health: NYSE:DVN

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:DVN has achieved a 6 out of 10:

  • An Altman-Z score of 3.66 indicates that DVN is not in any danger for bankruptcy at the moment.
  • DVN has a better Altman-Z score (3.66) than 79.25% of its industry peers.
  • The Debt to FCF ratio of DVN is 2.49, which is a good value as it means it would take DVN, 2.49 years of fcf income to pay off all of its debts.
  • DVN's Debt to FCF ratio of 2.49 is fine compared to the rest of the industry. DVN outperforms 71.23% of its industry peers.
  • DVN has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.

A Closer Look at 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:

  • DVN's Return On Assets of 19.33% is amongst the best of the industry. DVN outperforms 85.85% of its industry peers.
  • DVN has a better Return On Equity (39.25%) than 85.85% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 23.10%, DVN belongs to the top of the industry, outperforming 89.15% of the companies in the same industry.
  • The 3 year average ROIC (21.19%) for DVN is below the current ROIC(23.10%), indicating increased profibility in the last year.
  • Looking at the Profit Margin, with a value of 24.81%, DVN is in the better half of the industry, outperforming 62.74% of the companies in the same industry.
  • 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.

Disclaimer

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.

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DEVON ENERGY CORP

NYSE:DVN (5/24/2024, 7:23:32 PM)

After market: 48.1601 +0.01 (+0.02%)

48.15

-0.08 (-0.17%)

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