5 Best Dividend Stocks For Inflation

3. Devon Energy Corporation (NYSE:DVN)

Number Of Hedge Fund Holders: 66

Dividend Yield as of June 24: 6.70%

Devon Energy Corporation (NYSE:DVN) is an energy company based in Oklahoma. The core business of the company is the exploration, development, and production of oil and hydrocarbon in the United States. The company’s dividend yield as of June 24 came in at 6.70%. On May 2, Devon Energy Corporation (NYSE:DVN) declared a $1.27 per share quarterly dividend, surpassing the previous. The dividend will be paid to shareholders on June 30.

Devon Energy Corporation (NYSE:DVN) announced its financial results for the first fiscal quarter of 2022 on May 5, posting an EPS of $1.88, crossing market estimates by $0.12. Revenue for the quarter increased 116.35% on a year-over-year basis to $3.81 billion, surpassing predictions by $242.30 million.

Raymond James analyst John Freeman raised the price target on Devon Energy Corporation (NYSE:DVN) to $102 from $90 and maintained a Strong Buy rating on the shares after the company announced the acquisition of RimRock Oil and Gas for a purchase price of $865 million. Based on the analyst’s remarks, the deal is immediately accretive, with a free cash flow yield of 25% at strip pricing.

A top dividend stock among investors, 66 hedge funds were long Devon Energy Corporation (NYSE:DVN) in the first quarter of 2022, up from 51 funds in the preceding quarter. The total stakes held in Q1 amounted to $1.92 billion, compared to $1.74 billion in the last quarter. Rajiv Jain’s GQG Partners is the company’s biggest shareholder, with a position worth roughly $888 million.

Here is what GoodHaven Capital Management has to say about Devon Energy Corporation (NYSE:DVN) in their Q4 2020 investor letter:

“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”