Why NYSE:DVN qualifies as a good dividend investing stock.

DEVON ENERGY CORP (NYSE:DVN) has caught the attention of dividend investors as a stock worth considering. NYSE:DVN excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

What does the Dividend looks like 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:

• DVN has a Yearly Dividend Yield of 4.16%, which is a nice return.
• DVN's Dividend Yield is a higher than the industry average which is at 5.82.
• DVN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
• 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 35.94% of its income as dividend. This is a sustainable payout ratio.

Exploring NYSE:DVN's Health

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 3.32. This indicates that DVN is financially healthy and has little risk of bankruptcy at the moment.
• DVN has a better Altman-Z score (3.32) than 76.53% of its industry peers.
• DVN has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as DVN would need 2.32 years to pay back of all of its debts.
• DVN's Debt to FCF ratio of 2.32 is fine compared to the rest of the industry. DVN outperforms 72.77% of its industry peers.
• A Debt/Equity ratio of 0.49 indicates that DVN is not too dependend on debt financing.

Assessing 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 has a better Return On Assets (17.39%) than 85.45% of its industry peers.
• DVN has a Return On Equity of 35.69%. This is amongst the best in the industry. DVN outperforms 86.85% of its industry peers.
• DVN has a better Return On Invested Capital (21.32%) than 91.08% of its industry peers.
• The 3 year average ROIC (21.19%) for DVN is below the current ROIC(21.32%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 23.03%, DVN is in the better half of the industry, outperforming 65.73% of the companies in the same industry.
• With a decent Operating Margin value of 30.79%, DVN is doing good in the industry, outperforming 60.56% of the companies in the same industry.
• In the last couple of years the Operating Margin of DVN has grown nicely.

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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.