4. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 57
Dividend Yield as of October 19: 6.62%
Devon Energy Corporation (NYSE:DVN) is an Oklahoma-based independent energy company, primarily engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. On August 1, Devon Energy Corporation (NYSE:DVN) declared a $1.55 per share quarterly dividend, a 22% increase from its last dividend of $1.27. This dividend has a fixed and variable component, and in Q2 2022, the board approved an increase in the fixed dividend of 13% or $0.02 per share. The dividend was paid to shareholders on September 30. Devon Energy Corporation (NYSE:DVN) is one of the best income stocks to consider.
On October 18, Piper Sandler analyst Mark Lear raised the price target on Devon Energy Corporation (NYSE:DVN) to $96 from $94 and reaffirmed an Overweight rating on the shares. After a turbulent September, exploration and production names are “back on solid footing” heading into the Q3 results with the “OPEC+ supply cuts mostly to thank,” the analyst told investors in a bullish thesis.
According to Insider Monkey’s Q2 data, 57 hedge funds were long Devon Energy Corporation (NYSE:DVN), compared to 66 funds in the last quarter. Ken Fisher’s Fisher Asset Management features as a significant stakeholder of the company, with 4.2 million shares worth $232.3 million.
GoodHaven Capital Management released its second-quarter 2022 investor letter and mentioned Devon Energy Corporation (NYSE:DVN). Here is what it said:
“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.”
