5 Best Dividend Stocks for Steady Growth

1. Devon Energy Corporation (NYSE:DVN)

Dividend Yield as of October 4: 6.90%
5-Year Compound Average Dividend Growth Rate: 34.7%

Devon Energy Corporation (NYSE:DVN) is an American energy company that specializes in the exploration of hydrocarbons. The company has been making consistent dividend payments for the past 29 years and has raised its payouts every year since 2016. On August 1, it announced a 22% hike in its quarterly dividend to $1.55 per share. As of October 4, the stock has a dividend yield of 6.90%.

In August, Mizuho raised its price target on Devon Energy Corporation (NYSE:DVN) to $91 with a Buy rating on the shares, following the company’s quarterly earnings. The firm expects the company to generate higher cash returns in comparison with the broader market.

At the end of Q2 2022, 57 hedge funds tracked by Insider Monkey owned stakes in Devon Energy Corporation (NYSE:DVN), compared with 66 in the previous quarter. These stakes are collectively valued at $1.48 billion. With roughly 15 million DVN shares, GQG Partners was the company’s leading stakeholder in Q2.

GoodHaven Capital Management mentioned Devon Energy Corporation (NYSE:DVN) in its Q2 2022 investor letter. Here is what the firm has to say:

“Our biggest dollar gainer within this period was Devon Energy Corporation (NYSE:DVN), a position which emanated from a takeover in early 2021 of our long time holding WPX Energy. We are sitting on a material (unrealized) gain from our cost and are now receiving material dividends thanks to Devon’s thoughtful fixed/variable dividend policy. Energy is now a hot sector for investors but we have had a material exposure for a long time. We remember a bit too well $40 oil, NEGATIVELY PRICED front-month oil contract, and what it’s like to own a company with leverage and negative free cash flow during such periods. Our desire to have our biggest portfolio exposures be high return, growing, reasonably predictable and moderately levered companies lead us to reduce our Devon exposure in the past. When the recent facts and circumstances for the industry changed and appeared supportive of healthy oil prices, we decided to maintain a sizable holding and more recently added to the position. At Devon’s Q1 dividend rate, which is mostly variable in nature, the shares now yield approximately 10% and our yield on our average cost is materially higher. In addition, we maintain additional energy exposure through our long-term (and successful) holding in Hess Midstream and less directly through TerraVest and Berkshire Hathaway’s energy investments.”

You can also take a look at 11 Best Dividend Paying Stocks To Buy Now and 10 Very High Yield Dividend Stocks to Check Out

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