2 Energy Dividend Stocks to Buy -- and the Risk Behind Each Payout
Devon Energy just hiked its dividend 33%, but Exxon has a higher yield and more impressive dividend history.
Overview
Dividends and energy can be a complicated mix, given the energy sector's inherent volatility. You need to get a better understanding of a company's business before you buy an energy dividend stock. For most investors, a boring industry giant like ExxonMobil (NYSE: XOM) will likely be a better pick than an upstream-focused company like Devon Energy (NYSE: DVN), even after Devon's huge 33% dividend hike. But there are still reasons why some might prefer Devon.
To be fair to Devon Energy, the dividend increase it initiated in 2026, raising the quarterly payment from $0.24 per share to $0.32 per share, wasn't directly tied to oil prices. The move came after Devon completed the acquisition of Coterra, which materially increased the size of Devon's business. Presumably, the board believes the new level is sustainable, as evidenced by the increase being applied to the "fixed" dividend.
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Originally published at www.fool.com.