Covered — raised in 2026, low payout. A 2.49% yield on a 27.44% trailing payout is covered with room to spare: $0.32 a quarter, raised from $0.24 earlier in 2026 and paid September 30, 2026. The combined Devon — Coterra (merged May 7, 2026) — reported second-quarter 2026 revenue of $7.42 billion, up sharply year over year on the enlarged base, and the dividend remains a small claim on that cash flow.
Key risk: Commodity price and merger integration — earnings and cash flow are tied to oil and gas prices, and the Coterra combination (closed May 7, 2026) still has to deliver its targeted synergies.
Changes if: The payout pushes well past 27.44%, the $0.32 rate is cut back toward $0.24, or combined-company cash flow falls short of the enlarged dividend total.
- ✓Payout-coverage check: 27.44% of trailing earnings leaves nearly three-quarters of earnings behind the dividend.
- ✓Yield check: 2.49% indicated — $0.32/qtr × 4 at the $51.39 close on Oct. 23, 2026. Real, earned cash dividend, not a special or a return of capital.
- ✓Dividend growth check: Raised in 2026, from $0.24 a quarter in March to $0.32 in June and September — the rate stepped up, not down, through the merger year.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.