Devon Energy's Dividend Continues Declining. Is It Time to Sell?
Devon Energy (NYSE: DVN) launched the oil industry's first fixed-plus variable dividend framework a few years ago. Since then, the payout has been as advertised. The company has paid a fixed base dividend that has increased over the past few years. It has also made variable dividend payments that have varied considerably from quarter to quarter.
Unfortunately for income-focused investors, the variability has been to the downside in recent quarters. That decline continued in the most recent quarter as Devon's latest dividend is its lowest since late 2021. That steady drop might have investors wondering if it's time to get off this income gravy train before it runs out of fuel. Here's a look at what's driving the decline and whether that's a reason to sell.
Devon Energy recently declared its latest dividend based on its first-quarter results, which it will pay in the current quarter. It set the dividend payment at $0.72 per share. That payment was the $0.20 per share quarterly base dividend and a $0.52 per share variable payment. Also of note, the variable dividend comprised a $0.11 per share benefit from divesture contingency payments received in the quarter, which isn't recurring.
Source Fool.com
