Shares of Devon Energy (NYSE: DVN) have rocketed nearly 40% this year, pushing the stock price up above $60 a share. However, many Wall Street analysts believe the oil stock has more room to run. Several recently have updated their 12-month price targets, which are as much as 59% above the current price.

That wide gap between Devon's current price and what analysts believe the stock is worth is one reason its dividend yield is currently over 8%. Here's a closer at why analysts see a lot of upside potential in this high-yielding oil stock.  

Devon Energy is a trailblazer in the oil patch. The oil and gas producer launched the industry's first fixed-plus-variable dividend framework last year. It pays a fixed base quarterly dividend, giving investors a firm floor of dividend income. In addition, Devon pays a variable dividend of up to 50% of its post-base-dividend free cash flow. Many rivals have since launched similar frameworks over the past year.

Continue reading

Source Fool.com