Devon Energy (NYSE: DVN) has become one of the more popular stocks in the oil patch over the past year. A big driver is the company's monster dividend. Thanks to its innovative fixed-plus-variable dividend framework, Devon paid over $5 per share in dividends last year, giving it a roughly 8% annualized yield on the recent stock price.

However, Devon recently ran into weather-related headwinds, which could impact its next dividend payment. Devon's pain could become Pioneer Natural Resources (NYSE: PXD) gain. The rival oil producer offers even more income upside without the exposure to the weather-impacted region that could affect Devon's dividend.

Severe winter weather reduced Devon Energy's oil and gas production by 15,000 barrels of oil equivalent per day (BOE/d) during the fourth quarter or by about 2%. As a result, production will average roughly 636,000 BOE/d, putting it below its 640,000-660,000 BOE/d guidance range. That forecast level had the company on track to grow its output by 6% year-over-year and 9% on a per-share basis after factoring in its lower share count thanks to its repurchase program. 

Continue reading

Source Fool.com