This Oil Stock Is Turning Into an Explosive Dividend Growth Stock
Devon Energy (NYSE: DVN) is becoming an exceptional dividend growth stock. Since initiating its variable dividend program last year, the oil producer has steadily increased that payout. On top of that, it's raising the income floor by increasing its fixed quarterly dividend. These oil-fueled payouts could continue rising in the coming years, given Devon's low-cost oil business.
Devon had a breakout year in 2021, fueled by higher oil prices and its strategic combination with WPX Energy that closed early last year. The combined company generated $4.9 billion of operating cash flow (three times what Devon produced in 2020) and $2.9 billion of free cash flow, the highest in its 50-year history. Cash flow was strongest in the fourth quarter at $1.6 billion, up 173% year over year, while free cash flow was up to $1.1 billion (four times higher than the year-ago period).
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Source Fool.com
