Why Devon Energy Stock Slumped 11% in November
Shares of Devon Energy (NYSE: DVN) fell 11.4% in November, according to data provided by S&P Global Market Intelligence. The primary factor weighing on the oil stock was its third-quarter report, where the company unveiled a lower total dividend payment.
Devon Energy launched the oil industry's first fixed-plus-variable dividend framework in early 2021. That policy sees it pay out up to 50% of its post-base-dividend free cash flow via a variable payment each quarter. With its free cash flow steadily rising alongside oil prices, the company's total dividend outlay had increased each quarter.
However, with oil prices cooling off in the third quarter, Devon's free cash flow fell from its record high in the second quarter. Because of that, the company declared a lower fixed-plus-variable dividend payment of $1.35 per share in the period, which was down from the second-quarter's $1.55 per-share level. On a more positive note, Devon's lower third-quarter payment was 61% above the year-ago level.
Source Fool.com
