In this article, we discuss the 5 best LNG and LNG shipping stocks to buy now. If you want to see more stocks in this selection, check out the 10 Best LNG and LNG Shipping Stocks to Buy Now.
05. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders as of Q2, 2022: 57
Devon Energy Corporation (NYSE:DVN), an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates approximately 5,134 gross wells. 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 13, the stock has a dividend yield of 6.52%. This May, Devon Energy Corporation (NYSE:DVN) also expanded its previous share repurchase program by 25% to $2 billion. The new authorization has now extended its share buyback through May 4, 2023.
On September 21, Citi analyst Scott Gruber raised his price target for Devon Energy Corporation (NYSE:DVN) from $62 to $77 while maintaining a Buy rating for the stock. In a research note, Gruber informs investors that despite the decline in oil prices, the exploration and production businesses have “bounced modestly, leading to substantial 2023 multiple expansion and yield compression.”
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.”
