Is Devon Energy the Best Dividend Stock for You?
Dividend investors often look first at Dividend yield and then at the company behind the yield. That's not illogical, but they risk becoming enamored with the yield to such a degree that they overlook material facts. Devon Energy (NYSE: DVN) and its 6.3% dividend yield is a great example of this problem. Here's why some investors might love Devon and why many more will probably want to avoid it.
Devon Energy produces oil and natural gas. There are many layers to the business, including things like production costs (which are fairly low at around $40 per barrel at West Texas Intermediate crude prices) and the ability to continue drilling new wells (it has a 12-year inventory of wells to drill). From this perspective, Devon is a well-run oil company.
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Source Fool.com
