Devon Energy (NYSE: DVN) has been a monster dividend stock in recent years. A few years ago, the oil company launched the industry's first fixed-plus-variable dividend framework. It aimed to pay a fixed base dividend each quarter and up to 50% of its excess free cash flow in variable dividends. Higher oil prices in 2022 sent its free cash flow and variable dividend payments soaring.

However, the company shifted its capital return framework this year to give it more flexibility. As a result, its dividend payment was much lower in the first quarter as it emphasized repurchasing its shares. That change could pay off for shareholders in the long run.

Devon Energy recently reported its first-quarter results and declared its latest dividend payment. The company is paying $0.35 per share in dividends, consisting of a $0.22 per share base dividend (which it increased by 10% earlier this year) and a $0.13 per share variable dividend. That combined payout was near Devon's lowest level since it launched the new framework in 2021.

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Source Fool.com