April 26, 2025 a 12:46 pm
DVN: Dividend Analysis - Devon Energy Corporation
Devon Energy Corporation demonstrates a notable commitment to shareholder returns with its consistent dividend history. While the company has maintained a stable payout over decades, recent data indicates some fluctuations in growth rates and payout ratios. Analyzing these parameters is essential to understanding the resilience and future prospects of DVN's dividends.
📊 Overview
The overview provides insight into the sectoral placement and dividend specifics of Devon Energy Corporation, a key player in the Energy sector.
| Key Aspect | Detail |
|---|---|
| Sector | Energy |
| Dividend Yield | 3.62 % |
| Current Dividend Per Share | 1.48 USD |
| Dividend History | 33 years |
| Last Cut or Suspension | None |
📈 Dividend History
Understanding DVN's dividend history is crucial as it highlights the company's commitment to returning capital to shareholders among its sector peers.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.24 |
| 2024 | 1.45 |
| 2023 | 2.87 |
| 2022 | 5.17 |
| 2021 | 1.97 |
📈 Dividend Growth
Evaluating dividend growth over time showcases Devon Energy's ability to enhance shareholder value through increased payouts. This metric is vital for assessing potential future income growth.
| Time | Growth |
|---|---|
| 3 years | -9.71 % |
| 5 years | 32.88 % |
The average dividend growth is 32.88 % over 5 years. This shows moderate but steady dividend growth.
📊 Payout Ratio
Analyzing the payout ratio is significant as it indicates what proportion of earnings the company is returning to shareholders in the form of dividends.
| Key Figure | Ratio |
|---|---|
| EPS-Based | 32.15 % |
| Free Cash Flow-Based | -117.63 % |
The EPS-based payout ratio of 32.15 % indicates a comfortable margin for future dividend payments, whereas the high FCF payout ratio underlines potential cash flow constraints.
💼 Cashflow & Capital Efficiency
Cash flow metrics and capital efficiency provide insights into Devon Energy's operational liquidity and capital management, essential for sustaining and growing dividends.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | -4.12 % | 8.97 % | 8.50 % |
| Earnings Yield | 13.98 % | 12.94 % | 15.02 % |
| CAPEX to Operating Cash Flow | 112.32 % | 60.31 % | 60.08 % |
| Stock-Based Compensation to Revenue | 0.63 % | 0.61 % | 0.46 % |
| Free Cash Flow / Operating Cash Flow Ratio | -12.92 % | 39.69 % | 39.92 % |
| Return on Invested Capital | 10.63 % | 8.70 % | 29.98 % |
Devon Energy's financial metrics illustrate mixed performance in capital efficiency, underscoring areas such as CAPEX adjustments for improved cash flow leverage.
🧾 Balance Sheet & Leverage Analysis
Balance sheet ratios highlight Devon Energy's financial stability, ability to manage debt, and overall liquidity—vital indicators for dividend safety.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 63.49 % | 53.75 % | 59.97 % |
| Debt-to-Assets | 30.18 % | 26.47 % | 28.23 % |
| Debt-to-Capital | 38.83 % | 34.96 % | 37.49 % |
| Net Debt to EBITDA | 1.20 | 0.74 | 0.51 |
| Current Ratio | 1.04 | 1.07 | 1.25 |
| Quick Ratio | 0.95 | 0.99 | 1.19 |
| Financial Leverage | 2.10 | 2.03 | 2.12 |
The solid current and quick ratios support liquidity stability, while manageable debt ratios indicate Devon Energy's robust financial health relative to its capital structure.
📊 Fundamental Strength & Profitability
Key profitability metrics provide a view into management effectiveness at generating returns and operation margins pivotal for strategic dividend forecasting and investor confidence.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 19.94 % | 31.07 % | 53.86 % |
| Return on Assets | 9.48 % | 15.30 % | 25.36 % |
| Net Margin | 18.14 % | 24.75 % | 31.38 % |
| EBIT Margin | 23.29 % | 32.37 % | 42.37 % |
| EBITDA Margin | 43.71 % | 49.99 % | 54.16 % |
| Gross Margin | 29.55 % | 34.35 % | 43.66 % |
| Research & Development to Revenue | 0 % | 0 % | 0 % |
Devon Energy's strong ROE and healthy margin levels emphasize its efficiency in resource utilization and profit retention for reinvestment and shareholder dividends.
📉 Price Development
🗣️ Dividend Scoring System
| Criteria | Rating (1-5) | Score Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 3 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 31/40
✅ Rating
Devon Energy Corporation maintains a competitive dividend profile supported by strong operational metrics and financial ratios, warranting a positive outlook. This assessment recommends DVN as a favorable entity for dividend investors seeking stability and moderate growth within the energy sector.