DVN - Like Devon Energy's Dividend? You'll Love These Dynamic Dividend Stocks.
2023-12-14 07:46:00 ET
Devon Energy (NYSE: DVN) has become one of the more popular stocks in the oil patch, with its dividend a big reason it has grabbed investors' attention. The company's fixed-plus-variable dividend provides investors with a solid base income stream and upside potential based on earnings.
While Devon was the first oil company to popularize that payout framework, other companies also provide their investors with an income-driven dividend. Blackstone (NYSE: BX) and CME Group (NASDAQ: CME) are notable variable-dividend stocks. Here's why investors seeking some upside to their income stream should look at these dynamic dividend stocks .
Devon Energy launched the oil industry's first fixed-plus-variable dividend framework in 2021 after closing its merger-of-equals transaction with WPX Energy. The combined company expected to produce more free cash flow, which it intended to return to shareholders. The bulk of that return would come from paying dividends. It aimed to pay a fixed base dividend and a variable dividend of at least 50% of its excess free cash flow.
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Like Devon Energy's Dividend? You'll Love These Dynamic Dividend Stocks.