Devon Energy (NYSE: DVN) has become a big-time dividend stock over the past year. The oil company introduced a fixed-plus variable dividend framework right as oil prices started soaring. That's giving the company the fuel to pay an increasingly bigger dividend.

Devon recently unveiled its latest combined payment, which is 22% above the prior level. That pushed its annualized dividend yield up over 10% at the current stock price. Here's a closer look at Devon's big-time dividend and whether it can continue rising in the future. 

Devon Energy recently reported its second-quarter results. The oil company produced $2.7 billion of operating cash flow in the quarter, more than double what it delivered in the year-ago period, thanks to its rising production and higher oil prices. The company reinvested 22% of those funds into drilling new wells and other capital projects to maintain and grow its production. That left it with $2.1 billion of free cash flow, the highest quarterly total in the oil company's 51-year history. 

Continue reading

Source Fool.com