Is NYSE:DVN suited for dividend investing?

Our stock screener has singled out DEVON ENERGY CORP (NYSE:DVN) as a promising choice for dividend investors. NYSE:DVN not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Dividend Examination for NYSE:DVN

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:DVN has received a 7 out of 10:

• DVN has a Yearly Dividend Yield of 4.40%, which is a nice return.
• Compared to an average industry Dividend Yield of 6.09, DVN pays a bit more dividend than its industry peers.
• Compared to an average S&P500 Dividend Yield of 2.29, DVN pays a better dividend.
• 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.
• 37.75% of the earnings are spent on dividend by DVN. This is a low number and sustainable payout ratio.

What does the Health looks like for NYSE:DVN

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 6 out of 10:

• An Altman-Z score of 2.99 indicates that DVN is not in any danger for bankruptcy at the moment.
• DVN has a Altman-Z score of 2.99. This is in the better half of the industry: DVN outperforms 73.91% of its industry peers.
• The Debt to FCF ratio of DVN is 2.18, which is a good value as it means it would take DVN, 2.18 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 2.18, DVN is doing good in the industry, outperforming 75.36% of the companies in the same industry.
• A Debt/Equity ratio of 0.47 indicates that DVN is not too dependend on debt financing.

What does the Profitability looks like for NYSE:DVN

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:DVN was assigned a score of 6 for profitability:

• Looking at the Return On Assets, with a value of 13.92%, DVN belongs to the top of the industry, outperforming 83.57% of the companies in the same industry.
• DVN has a better Return On Equity (27.90%) than 82.61% of its industry peers.
• DVN's Return On Invested Capital of 16.91% is amongst the best of the industry. DVN outperforms 86.47% of its industry peers.
• The 3 year average ROIC (21.19%) for DVN is well above the current ROIC(16.91%). The reason for the recent decline needs to be investigated.
• The Profit Margin of DVN (22.60%) is better than 69.08% of its industry peers.
• DVN has a better Operating Margin (30.31%) than 62.80% of its industry peers.
• DVN's Operating Margin has improved in the last couple of years.

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

Check the latest full fundamental report of DVN for a complete fundamental analysis.

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.