5 Best Long-Term Dividend Stocks to Buy Now

1. Devon Energy Corporation (NYSE:DVN)

Dividend Yield as of October 19: 6.68%

Devon Energy Corporation (NYSE:DVN) specializes in the exploration of hydrocarbons and is headquartered in Oklahoma. In October, Piper Sandler raised its price target on the stock to $96 with an Overweight rating on the shares. The firm mentioned that Exploration and Production stocks are back on solid footing heading into the third quarter of the year.

On August 1, Devon Energy Corporation (NYSE:DVN) declared a 22% hike in its quarterly dividend to $1.55 per share. This was the company’s sixth consecutive year of dividend growth. Moreover, it has paid dividends to shareholders for 29 years in a row. As of October 19, the stock has a dividend yield of 6.68%.

As of the close 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 High-Dividend Stocks Under $100 and 11 Best Dividend Stocks to Buy According to Warren Buffett

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