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

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.

Evaluating Dividend: 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:

• DVN has a Yearly Dividend Yield of 4.43%, which is a nice return.
• Compared to an average industry Dividend Yield of 5.91, 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 2.32.
• On average, the dividend of DVN grows each year by 56.62%, which is quite nice.
• 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.

Understanding NYSE:DVN's Health

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 3.26 indicates that DVN is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.26, DVN is in the better half of the industry, outperforming 76.56% 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 73.68% of the companies in the same industry.
• DVN has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.

Evaluating Profitability: 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:

• With an excellent Return On Assets value of 17.39%, DVN belongs to the best of the industry, outperforming 86.60% of the companies in the same industry.
• DVN has a better Return On Equity (35.69%) than 88.04% of its industry peers.
• DVN has a better Return On Invested Capital (21.32%) than 92.34% 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.
• With a decent Profit Margin value of 23.03%, DVN is doing good in the industry, outperforming 67.94% of the companies in the same industry.
• DVN has a Operating Margin of 30.79%. This is in the better half of the industry: DVN outperforms 62.20% of its industry peers.
• DVN's Operating Margin has improved in the last couple of years.

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

For an up to date full fundamental analysis you can check the fundamental report of DVN

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.