Exploring NYSE:DVN's dividend characteristics.

Last update: Jul 8, 2024

DEVON ENERGY CORP (NYSE:DVN) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:DVN scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

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 4.26%, which is a nice return.
DVN's Dividend Yield is a higher than the industry average which is at 6.18.
DVN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
The dividend of DVN is nicely growing with an annual growth rate of 56.62%!
DVN has paid a dividend for at least 10 years, which is a reliable track record.
35.94% of the earnings are spent on dividend by DVN. This is a low number and sustainable payout ratio.

Deciphering NYSE:DVN's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:DVN has received a 6 out of 10:

An Altman-Z score of 3.29 indicates that DVN is not in any danger for bankruptcy at the moment.
DVN has a better Altman-Z score (3.29) than 78.20% 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 has a Debt to FCF ratio of 2.32. This is in the better half of the industry: DVN outperforms 73.93% 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.

Profitability Insights: NYSE:DVN

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:DVN scores a 6 out of 10:

The Return On Assets of DVN (17.39%) is better than 85.78% of its industry peers.
DVN has a Return On Equity of 35.69%. This is amongst the best in the industry. DVN outperforms 87.20% of its industry peers.
DVN has a Return On Invested Capital of 21.32%. This is amongst the best in the industry. DVN outperforms 92.42% 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.
The Profit Margin of DVN (23.03%) is better than 67.30% of its industry peers.
DVN's Operating Margin of 30.79% is fine compared to the rest of the industry. DVN outperforms 62.09% of its industry peers.
In the last couple of years the Operating Margin of DVN has grown nicely.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Disclaimer

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.