Income-seeking investors shouldn't underestimate the potential for significant capital returns at Devon Energy (NYSE: DVN). The stock's dividend isn't quite at the level it's been in recent years, but neither is its share price. Moreover, the current trailing-dividend yield of 4.5% is nothing to be sniffed at, and there are major reasons to believe its dividend could significantly increase in 2025. Here's why Devon Energy is an excellent stock for high dividend-yield-focused investors.

This is an oil and gas exploration and production company, so if you aren't comfortable with the outlook for energy prices or aren't looking to include energy exposure in your portfolio, read no further.

That said, many investors are looking for exposure to energy prices or are agnostic about their direction. In that case, Devon's mix of very high cash-flow generation, strategic acquisition of Grayson Mill Energy's Williston basin (Bakken) business for $5 billion, and capital-return strategy are compelling reasons to buy the stock.

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Source Fool.com