3. Devon Energy Corporation (NYSE:DVN)
Dividend Yield as of November 22: 7.35%
Devon Energy Corporation (NYSE:DVN) is an American energy company that is engaged in the exploration of hydrocarbons. In Q3 2022, the company’s revenue came in at $5.43 billion, which showed a 56.5% growth compared to the same period last year. It generated $2.1 billion in operating cash flow, up 32% from the prior-year period. The company’s cash flow for the quarter was recorded at $1.5 billion.
Argus raised its price target on Devon Energy Corporation (NYSE:DVN) to $90 and maintained a Buy rating on the shares, following the company’s Q3 earnings. The firm also appreciated the company’s strong balance sheet and substantial liquidity.
Devon Energy Corporation (NYSE:DVN) is one of the best dividend stocks on our list as it has paid regular dividends to shareholders for 29 years in a row. Its current quarterly dividend stands at $1.35 per share with a dividend yield of 7.35%, as of November 22.
Devon Energy Corporation (NYSE:DVN) was a part of 51 hedge fund portfolios in Q3 2022, according to Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $1.5 billion.
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.”
