5 Best Money-Making Stocks To Buy Now

1. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Holders: 57

At the close of Q2 2022, 57 hedge funds disclosed ownership of stakes in Devon Energy Corporation (NYSE:DVN). The total value of these stakes amounted to $1.48 billion. As of June 30, GQG Partners is the leading shareholder in Devon Energy Corporation (NYSE:DVN) and has stakes worth $822 million in the company.

Devon Energy Corporation (NYSE:DVN) is profitable, cash-rich, and paying a strong dividend. The stock is ranked high among the best money-making stocks to buy now. As of October 19, Devon Energy Corporation (NYSE:DVN) has gained 57.87% year to date and is offering a forward dividend yield of 8.89%. The company has a trailing twelve-month operating margin of 38.37% and has free cash flows of over $5.51 billion.

Wall Street sees material upside to Devon Energy Corporation (NYSE:DVN). This September, Citi analyst Scott Gruber raised his price target on Devon Energy Corporation (NYSE:DVN) to $77 from $62 and reiterated a Buy rating on the shares. On October 18, Piper Sandler analyst Mark Lear raised his price target on Devon Energy Corporation (NYSE:DVN) to $96 from $94 and maintained an Overweight rating on the shares.

Here is what GoodHaven Capital Management had to say about Devon Energy Corporation (NYSE:DVN) in its second-quarter 2022 investor letter:

“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 Nanocap Stocks To Invest In and 11 Best Dividend Stocks To Buy According To Warren Buffett.

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