This Oil Stock Adds Fuel to Push Its Already Massive Dividend Even Higher
Devon Energy (NYSE: DVN) is paying out a gusher of dividends these days due to its oil-fueled dividend framework. The oil producer pays a growing fixed-base quarterly dividend that it complements with a variable payout based on its cash flow.
With oil prices surging, both dividend payments have soared this year. Its most recent payment pushed its annualized dividend yield to around 6.5%, much higher than the S&P 500's 1.4% yield.
Devon recently added more fuel for the dividend by agreeing to purchase additional oil-producing land in the Williston Basin. The highly accretive deal will enable Devon to immediately boost its fixed quarterly dividend. It should also provide the cash to pay even higher variable dividends in the future.
Source Fool.com
