Is Devon Energy Stock a Buy?
If you're looking to invest in oil and gas stocks, Devon Energy (NYSE: DVN) is a worthy candidate. The oil and gas producer has a trailing dividend yield of 4.8% and provides an attractive way for investors to increase their passive income if oil prices remain high. Here's what you need to know about Devon Energy before you buy it today.
Devon Energy explores and produces crude oil and natural gas primarily onshore in the United States, making it an upstream oil company. As an upstream operator, Devon makes money selling its oil and gas at market-determined prices, and its profits are tied closely to the price of oil.
This can be a strong tailwind for the company when oil prices rise, like in 2022, when the U.S. placed sanctions on Russian oil following its invasion of Ukraine. As a result, West Texas Intermediate (WTI) crude oil prices shot up to over $120 per barrel and stayed elevated for much of the year.
Source Fool.com
