In the world of energy stocks, Devon Energy (NYSE: DVN) has been making headlines lately for its acquisition of Grayson Mill Energy’s Williston Basin business and its record production levels. However, when it comes to dividends, there are two other energy stocks worth considering instead.
Devon Energy may boast a dividend yield of around 4.4%, which is attractive compared to the S&P 500 index’s yield of 1.2% and the energy sector’s average yield of 3.1%. But here’s the catch – Devon’s dividend is subject to change based on the volatility of oil and gas prices. This variable dividend policy can make it difficult for investors, especially those relying on income from their investments.
On the other hand, Chevron (NYSE: CVX) offers a similar dividend yield of around 4.4%, but with a key difference. Chevron’s diversified business across upstream, midstream, and downstream segments helps mitigate the impact of fluctuating energy prices. With a conservative use of leverage and a track record of increasing dividends annually for 37 years, Chevron is a more reliable option for income-oriented investors.
For those seeking even more stability in their income streams, Enbridge (NYSE: ENB) stands out as a conservative choice. Operating in the midstream segment, Enbridge focuses on generating steady cash flows from energy infrastructure assets like pipelines. With a dividend yield of 6.6% and 29 consecutive years of dividend growth, Enbridge offers a reliable source of income backed by its robust business model.
While Devon Energy has its merits, investors looking for reliable income may find better opportunities with Chevron or Enbridge. These high-yield energy stocks not only provide exposure to the energy sector but also offer resilience and growth potential in the long run.
When it comes to making investment decisions, it’s essential to consider all factors that could impact your portfolio’s performance. At Extreme Investor Network, we provide insights and analysis to help you navigate the complex world of finance and make informed choices. Stay tuned for more expert advice and recommendations to enhance your investment journey.