Rising Oil Prices Could Mean Big Dividend Increases for Devon Energy Shareholders
Oil and natural gas are commodities, and investors in the energy sector need to come to terms with that. Devon Energy (NYSE: DVN), like other companies that produce these key global fuels, doesn't control the often dramatic ups and downs of these commodities. However, their price swings can have a huge impact on Devon's financial performance.
What Devon does control, however, is its dividend. And if things go according to plan, the recent upswing in oil prices should lead to sizable dividend increases for shareholders.
There are a lot of factors that go into an energy company's results. For example, production is a key metric to track. Increasing production means the business is growing, and falling production suggests the opposite. Operating costs are important as well. Low costs mean an energy producer will make more per barrel, and high costs don't have the same appeal.
Source Fool.com
