Devon Energy Corporation (NYSE:DVN) Increases Dividend to $0.32 Per Share

Key Points

• Devon Energy raised its quarterly dividend to $0.32 per share (a 33.3% increase from $0.24), payable June 30 to shareholders of record on June 15, representing an annualized dividend of $0.96 and a yield of about 2.8%.
• The dividend appears sustainable: Devon's payout ratio is roughly 22.3% and projected earnings should be sufficient to cover the $0.96 annual payout.
• Devon slightly missed the quarter's EPS ($1.04 vs. $1.06) with revenue down 14.5% year-over-year, but analysts retain a Moderate Buy consensus and an average price target of $55.59, above the recent ~$45.7 share price.

Devon Energy Corporation (NYSE:DVN - Get Free Report) announced a quarterly dividend on Thursday, May 7th. Shareholders of record on Monday, June 15th will be given a dividend of 0.32 per share by the energy company on Tuesday, June 30th. This represents a c) dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend is Monday, June 15th. This is a 33.3% increase from Devon Energy's previous quarterly dividend of $0.24.

Devon Energy has increased its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 1 consecutive years. Devon Energy has a dividend payout ratio of 22.3% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Devon Energy to earn $4.89 per share next year, which means the company should continue to be able to cover its $0.96 annual dividend with an expected future payout ratio of 19.6%.

Devon Energy Stock Up 0.9%

DVN stock opened at $45.72 on Friday. The company has a market cap of $28.39 billion, a price-to-earnings ratio of 12.73, a PEG ratio of 0.71 and a beta of 0.43. The company has a current ratio of 1.01, a quick ratio of 0.90 and a debt-to-equity ratio of 0.48. Devon Energy has a 12 month low of $30.24 and a 12 month high of $52.71. The firm has a 50-day moving average of $47.32 and a two-hundred day moving average of $40.82.

Devon Energy (NYSE:DVN - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The energy company reported $1.04 EPS for the quarter, missing analysts' consensus estimates of $1.06 by ($0.02). The business had revenue of $3.81 billion during the quarter, compared to analyst estimates of $4.34 billion. Devon Energy had a net margin of 13.71% and a return on equity of 15.22%. The firm's revenue was down 14.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.82 EPS. As a group, analysts forecast that Devon Energy will post 5.66 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. Truist Financial assumed coverage on shares of Devon Energy in a research note on Tuesday, March 24th. They set a "buy" rating and a $63.00 target price on the stock. Piper Sandler lifted their target price on shares of Devon Energy from $59.00 to $67.00 and gave the stock an "overweight" rating in a research note on Thursday, March 12th. JPMorgan Chase & Co. reduced their target price on shares of Devon Energy from $44.00 to $41.00 and set an "overweight" rating on the stock in a research note on Thursday, January 15th. Scotiabank lifted their target price on shares of Devon Energy from $41.00 to $46.00 and gave the stock a "sector perform" rating in a research note on Wednesday, April 22nd. Finally, Siebert Williams Shank lifted their target price on shares of Devon Energy from $46.00 to $50.00 and gave the stock a "buy" rating in a research note on Monday, January 26th. Four research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $55.59.

Devon Energy Company Profile

Devon Energy Corporation NYSE: DVN is an independent oil and gas exploration and production company headquartered in Oklahoma City, Oklahoma. The company focuses on the exploration, development, production and marketing of hydrocarbons, including crude oil, natural gas liquids (NGLs) and natural gas. Devon operates as an upstream energy company that acquires, evaluates and develops onshore resource plays using a combination of drilling, completion and production optimization techniques.

Core business activities include identifying and developing energy reserves, operating well programs and managing reservoir performance to generate production and cash flow.

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