5 Best Energy Dividend Stocks To Invest In

4. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Holders: 55
Dividend Yield as of February 25: 7.95%

An Oklahoma-based energy company, Devon Energy Corporation (NYSE:DVN) is next on our list of the best energy dividend stocks to invest in. On February 14, the company declared an 11% hike in its fixed dividend to $0.20 per share. It has been making uninterrupted dividend payments to shareholders since 1993. The stock’s dividend yield came in at 7.95% on February 25.

In the fourth quarter of 2022, Devon Energy Corporation (NYSE:DVN) reported revenue of $4.3 billion, up nearly 1% from the same period last year. The company’s operating cash flow for the quarter came in at $1.9 billion, up 18% from the prior-year period. Moreover, its free cash flow for FY22 reached its all-time high in the company’s 52-year operating history to $6 billion.

The number of hedge funds tracked by Insider Monkey owning stakes in Devon Energy Corporation (NYSE:DVN) grew to 55 in Q4 2022, from 51 in the previous quarter. The collective value of these stakes is over $823.5 million.

GoodHaven Capital Management mentioned Devon Energy Corporation (NYSE:DVN) in its Q2 2022 investor letter. Here is what the firm has to say:

“Our biggest dollar gainer within this period was Devon Energy Corporation (NYSE:DVN), a position which emanated from a takeover in early 2021 of our long time holding WPX Energy. We are sitting on a material (unrealized) gain from our cost and are now receiving material dividends thanks to Devon’s thoughtful fixed/variable dividend policy. Energy is now a hot sector for investors but we have had a material exposure for a long time. We remember a bit too well $40 oil, NEGATIVELY PRICED front-month oil contract, and what it’s like to own a company with leverage and negative free cash flow during such periods. Our desire to have our biggest portfolio exposures be high return, growing, reasonably predictable and moderately levered companies lead us to reduce our Devon exposure in the past. When the recent facts and circumstances for the industry changed and appeared supportive of healthy oil prices, we decided to maintain a sizable holding and more recently added to the position. At Devon’s Q1 dividend rate, which is mostly variable in nature, the shares now yield approximately 10% and our yield on our average cost is materially higher. In addition, we maintain additional energy exposure through our long-term (and successful) holding in Hess Midstream and less directly through TerraVest and Berkshire Hathaway’s energy investments.”