With shares of this upstream energy powerhouse down about 10% year to date, investors may suspect that there’s something awry with the company — especially with the S&P 500 rising about 23% during the same period.

But the greater catalyst for the stock’s decline is probably the downward movement (albeit minor) in energy prices. West Texas Intermediate (WTI) crude, the U.S. oil benchmark, has dipped about 20% over the past year, and investors may speculate that a further decline is in the immediate future.

Although it’s important to acknowledge the lower price of oil, it’s also crucial to appreciate that energy prices both rise and fall. Devon Energy is a leading exploration and production company that has withstood energy price downturns before, and it will likely withstand future downturns as well.

Even with the price of WTI at $70 per barrel, for instance, Devon projects a free cash flow yield of 9% — an auspicious sign considering management targets returning 70% of free cash flow to investors.

For further reassurance that this company is operating from a strong financial position — and to hear updated guidance, which includes the recent Grayson Mill Energy acquisition — investors should pay attention to its third-quarter earnings presentation on Nov. 5.

Lee Samaha (Kinder Morgan): It was easy to write off fossil fuels a few years ago, but the reality of volatile energy prices, geopolitical conflict, and the increasing cost and complexity of renewable energy mean the transition is going to take place at a slower pace than previously thought.

That’s good news for the nuclear industry and for the natural gas industry. The new reality has sent stocks like gas turbine and services (and wind power) company GE Vernova soaring, alongside utilities with nuclear power capability, like Vistra.

It has also helped investors to realize the charms of Kinder Morgan, a specialist in natural gas pipelines and storage, liquefied natural gas (LNG) liquefaction, and LNG terminals.

Moreover, suppose the betting markets are right about the presidential election? If they are, there will be a new administration in the White House that could be much more favorable to expanding U.S. energy production, notably gas, even more than it already has over the past four years.

It speaks to a de-risking of the issue that Kinder Morgan investors would be most concerned about, namely the long-term future of natural gas/LNG as an energy source or export product. While the clean energy transition is taking place, it’s clear that there’s a significant role to play for gas as an energy source to support the intermittent nature of renewable energy.

And the transition will take place over multiple decades. As such, Kinder Morgan will likely generate income and dividends (currently yielding 4.7%) for investors for many years.

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Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool recommends United Parcel Service. The Motley Fool has a disclosure policy.

3 Outstanding Dividend Stocks That Are Too Cheap to Ignore was originally published by The Motley Fool