Where Will Devon Energy's Dividend Be in 1 Year?
Most companies that pay dividends try to provide investors with a reliable income stream, setting a dividend that they believe can be sustained, if not grown, over time. Devon Energy (NYSE: DVN) has taken the exact opposite approach. So while the dividend yield on major quote services is listed as 4.9%, you shouldn't count on that figure. Here's what you need to know and why future dividends from Devon are anything but set in stone.
Devon Energy is part of the energy sector, as its name implies, producing oil and natural gas from its onshore U.S. assets. It operates in the Williston Basin, Powder River Basin, Anadarko Basin, Delaware Basin, and Eagle Ford. Production increased by 8% in 2023 over 2022 levels. The company estimates that its break-even price in 2024 will be $45 per barrel or less, well below the industry average, which is closer to $55 per barrel. Management believes it has at least 10 years' worth of drilling opportunities ahead of it.
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Source Fool.com
