Why NYSE:DVN provides a good dividend, while having solid fundamentals.

Last update: Jun 14, 2024

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.

Unpacking NYSE:DVN's Dividend Rating

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:DVN has achieved a 7 out of 10:

With a Yearly Dividend Yield of 4.38%, DVN is a good candidate for dividend investing.
DVN's Dividend Yield is a higher than the industry average which is at 6.06.
Compared to an average S&P500 Dividend Yield of 2.37, DVN pays a better dividend.
The dividend of DVN is nicely growing with an annual growth rate of 56.62%!
DVN has been paying a dividend for at least 10 years, so it has a reliable track record.
35.94% of the earnings are spent on dividend by DVN. This is a low number and sustainable payout ratio.

Unpacking NYSE:DVN's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, 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 3.25. This indicates that DVN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.25, DVN is doing good in the industry, outperforming 77.73% of the companies in the same industry.
The Debt to FCF ratio of DVN is 2.32, which is a good value as it means it would take DVN, 2.32 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.32, DVN is doing good in the industry, outperforming 73.93% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that DVN is not too dependend on debt financing.

Profitability Insights: NYSE:DVN

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:DVN has achieved a 6:

DVN's Return On Assets of 17.39% is amongst the best of the industry. DVN outperforms 85.78% of its industry peers.
The Return On Equity of DVN (35.69%) is better than 87.20% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.32%, DVN belongs to the top of the industry, outperforming 92.42% of the companies in the same industry.
The last Return On Invested Capital (21.32%) for DVN is above the 3 year average (21.19%), which is a sign of increasing profitability.
The Profit Margin of DVN (23.03%) is better than 66.35% of its industry peers.
The Operating Margin of DVN (30.79%) is better than 61.61% of its industry peers.
In the last couple of years the Operating Margin of DVN has grown nicely.

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 article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.