3 Things You Need to Know If You Buy Devon Energy Today
It's no secret that Devon Energy (NYSE: DVN) is a worthy candidate for income-seeking investors looking for exposure to the energy sector. Its trailing dividend yield is 6.3%, and if you annualize its last quarterly dividend of $0.77, its yield is even higher at 6.7%.
That said, it's not simply a case of just buying the stock and waiting for the dividends to roll in; there are three more important things to consider before buying in.
It's been well documented that Devon's dividend varies with the price of oil and gas. For reference, it pays a base dividend of $0.20 and retains the flexibility to pay 50% of its excess free cash flow (which includes the base dividend) in the form of a variable dividend.
Source Fool.com
