Unraveling the dividend history, yield, and growth rates of Devon Energy Corp (DVN, Financial)
Devon Energy Corp(DVN) recently announced a dividend of $0.49 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-14. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into Devon Energy Corps dividend performance and assess its sustainability.
What Does Devon Energy Corp Do?
Devon Energy, based in Oklahoma City, is one of the largest independent exploration and production companies in North America. The firm's asset base is spread throughout onshore North America and includes exposure to the Delaware, STACK, Eagle Ford, Powder River Basin, and Bakken plays. At year-end 2022, Devon's proved reserves totaled 1.8 billion barrels of oil equivalent, and net production that year was 611 thousand boe/d, of which oil and natural gas liquids made up 73% of production, with natural gas accounting for the remainder.
A Glimpse at Devon Energy Corp's Dividend History
Devon Energy Corp has maintained a consistent dividend payment record since 1993. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Devon Energy Corp's Dividend Yield and Growth
As of today, Devon Energy Corp currently has a 12-month trailing dividend yield of 8.87% and a 12-month forward dividend yield of 6.76%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Devon Energy Corp's annual dividend growth rate was 145.40%. Extended to a five-year horizon, this rate decreased to 83.10% per year. And over the past decade, Devon Energy Corp's annual dividends per share growth rate stands at 7.40%.
Based on Devon Energy Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Devon Energy Corp stock as of today is approximately 182.54%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Devon Energy Corp's dividend payout ratio is 0.62.
Devon Energy Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Devon Energy Corp's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 5 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Devon Energy Corp's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Devon Energy Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Devon Energy Corp's revenue has increased by approximately 23.70% per year on average, a rate that outperforms approximately 76.66% of global competitors.
Next Steps
Based on the analysis of Devon Energy Corp's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, it's clear that the company has a solid foundation for sustaining its dividends. However, investors should continue monitoring these factors to ensure continued dividend performance. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
