5 Best Dividend Stocks to Buy According to Morgan Stanley’s Quant Screen

1. Diamondback Energy, Inc. (NASDAQ:FANG)

Dividend Yield as of September 27: 10.59% 

Total Expected Return: 36%

Number of Hedge Fund Holders: 54

Wall Street is bullish on Diamondback Energy, Inc. (NASDAQ:FANG). On September 19, KeyBanc analyst Tim Rezvan started coverage of Diamondback Energy, Inc. (NASDAQ:FANG) with a buy-side Overweight rating and a $163 price target. This September, Citi analyst Scott Gruber raised his price target on Diamondback Energy, Inc. (NASDAQ:FANG) to $155 from $148 and maintained a Buy rating on the shares. Morgan Stanley sees a 36% upside to Diamondback Energy, Inc. (NASDAQ:FANG) from current levels.

Diamondback Energy, Inc. (NASDAQ:FANG) is trading at bargain levels, making now an attractive entry point for investors. As of September 27, the stock is trading at a PE ratio of 5.16 and is offering a forward dividend yield of 10.59%, which the company supports with free cash flows of $2.8 billion.

On August 1, Diamondback Energy, Inc. (NASDAQ:FANG) announced earnings for the second quarter of fiscal 2022. The company reported a revenue of $2.77 billion, up 65% year over year, and beat expectations by $328 million. The company reported earnings per share of $7.07 and outperformed estimates by $0.40. Shares of Diamondback Energy, Inc. (NASDAQ:FANG) have surged 16.5% over the past twelve months, as of September 27.

Insider Monkey spotted Diamondback Energy, Inc. (NASDAQ:FANG) on 54 hedge fund portfolios at the end of Q2 2022. The total stakes of these hedge funds amounted to $811 million. As of June 30, Harris Associates is the leading shareholder in the company with stakes worth $181 million.

You can also take a look at 14 Best European Dividend Stocks To Buy and 10 Best Stocks To Buy Now According To Quant Billionaires.

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