Devon Energy (DVN) pays a 49-cent quarterly dividend, which includes a 29-cent variable portion (which is calculated as 50% of the adjusted free cash flow). As a result, DVN stock has an attractive 4.5% yield, based on an annualized $1.96 dividend.
However, depending on the results of cash flow during Q3, the dividend could be cut based on a lower variable portion of the dividend. However, even if that happens it does not seem that, given the high oil prices during Q3, the dividend cut may not be that high.
