Devon Energy: Buy, Sell, or Hold?

Devon Energy (NYSE: DVN) is an acquired taste -- only appropriate for a certain kind of investor. That's true despite a generous 4.6% dividend yield and a shareholder-friendly dividend and stock buyback policy. Here's why this oil and natural gas company could be a buy or hold for some investors, but many more will likely want to avoid it.

Devon Energy is an upstream player in the U.S. energy sector. That means it produces oil and natural gas in the United States that it then sells to generate revenue. While the day-to-day operation of the company is probably very complex, the big picture here is fairly simple to understand. If U.S. oil and natural gas prices are on the rise, so, too, are Devon's financial results. If oil and natural gas prices are declining, the company's results reflect that accordingly.