8 Best Dividend Leaders to Buy According to Wall Street Analysts

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

Upside Potential as of December 19: 40.3%

Diamondback Energy, Inc. (NASDAQ:FANG) is a Texas-based company that engages in the exploration of hydrocarbons. In September, the company completed its merger with Endeavor Energy Resources, strengthening its midstream operations. These moves are expected to increase its scale and lower costs, better positioning the company to withstand potential declines in oil prices. As a result, its recent stock dip driven by oil market fluctuations may present an appealing buying opportunity for investors looking for a significant upside in the oil sector. The stock is down by nearly 3% in the past 12 months.

In the third quarter of 2024, Diamondback Energy, Inc. (NASDAQ:FANG) reported revenue of $2.65 billion, up by over 13% from the same period last year. During the quarter, the company drilled 71 wells in the Midland Basin and five wells in the Delaware Basin. It brought 87 operated wells online in the Midland Basin and eight wells in the Delaware Basin, with an average lateral length of 12,238 feet.

Diamondback Energy, Inc. (NASDAQ:FANG)’s cash position also came in strong. The company generated an operating cash flow of $1.2 billion and its free cash flow came in at $708 million. During the quarter, it returned $780 million to shareholders, representing approximately 78% of its Adjusted Free Cash Flow. This included stock buybacks and the declared base dividend for the quarter.

Diamondback Energy, Inc. (NASDAQ:FANG), one of the best dividend leaders, started paying dividends in 2018 and has remained regular with its payouts over these years. The company currently offers a quarterly dividend of $0.90 per share and has a dividend yield of 5.42%, as of December 19.

Insider Monkey’s database of Q3 2024 indicated that 49 hedge funds held stakes in Diamondback Energy, Inc. (NASDAQ:FANG), growing from 44 in the previous quarter. The consolidated value of these stakes is over $1.67 billion. With over 2.1 million shares, Diamond Hill Capital was the company’s leading stakeholder in Q3.