Is NYSE:DVN suited for dividend investing?

DEVON ENERGY CORP (NYSE:DVN) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:DVN demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

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:

• With a Yearly Dividend Yield of 4.39%, DVN is a good candidate for dividend investing.
• DVN's Dividend Yield is a higher than the industry average which is at 6.41.
• DVN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.18.
• 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.
• 37.75% of the earnings are spent on dividend by DVN. This is a low number and sustainable payout ratio.

A Closer Look at Health for NYSE:DVN

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 6 out of 10:

• DVN has a Altman-Z score of 2.90. This is in the better half of the industry: DVN outperforms 72.06% 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 75.49% of the companies in the same industry.
• DVN has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.

Analyzing Profitability Metrics

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:DVN, the assigned 7 is noteworthy for profitability:

• DVN's Return On Assets of 13.92% is amongst the best of the industry. DVN outperforms 83.82% of its industry peers.
• DVN has a Return On Equity of 27.90%. This is amongst the best in the industry. DVN outperforms 83.82% of its industry peers.
• DVN's Return On Invested Capital of 16.91% is amongst the best of the industry. DVN outperforms 85.78% 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.
• With a decent Profit Margin value of 22.60%, DVN is doing good in the industry, outperforming 69.61% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 30.31%, DVN is in the better half of the industry, outperforming 60.78% of the companies in the same industry.
• DVN's Operating Margin has improved in the last couple of years.

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

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.