Beat the S&P 500 With This Cash-Gushing Dividend Stock
Devon Energy (NYSE: DVN) has been a winning stock since closing its transformational merger with WPX Energy in early 2021. The transaction turned it into a free cash flow machine. That gave it the fuel to grow value for its investors through dividends, share repurchases, debt reduction, and acquisitions. The company's adept use of its cash flow has helped power a nearly 190% total return since the merger closed (40.6% annualized), easily beating the S 500's roughly 40% (11.4% annualized) total return during that period.
The oil stock should have plenty of fuel to continue growing shareholder value in the future. Here's a look at what drives that view.
When Devon Energy closed its merger of equals transaction with WPX Energy in early 2021, the company believed the deal would significantly enhance its ability to generate free cash flow. "This transformational merger enhances the scale of our operations, builds a dominant position in the Delaware Basin and accelerates our cash-return business model that prioritizes free cash flow generation and the return of capital to shareholders," stated Devon's executive chairman Dave Hager at the time.
Source Fool.com
