Why Diamondback Energy (FANG) Earns its Strong Buy Rating in 2025

Diamondback Energy, Inc. (NASDAQ:FANG) is included among the Best Strong Buy Dividend Stocks to Invest in Now.

As a policy, the company plans to return half of its free cash flow to shareholders through a mix of base and variable dividends, along with share repurchases. The company still has $1.845 billion left under its $6 billion share repurchase program.

By the end of the first quarter, Diamondback Energy, Inc. (NASDAQ:FANG) had bought back $829 million worth of its shares, roughly $2.80 per share. The company reported strong earnings in the first quarter of 2025, with revenues of $4.05 billion, up 81.7% from the same period last year. The revenue also beat analysts’ estimates by $294.2 million. Its cash position also remained stable with an operating cash flow of $2.4 billion and free cash flow of $1.5 billion.

Diamondback Energy, Inc. (NASDAQ:FANG) initiated its dividend policy in 2018 and has raised its payouts multiple times since then. The company currently offers a quarterly dividend of $1.00 per share and has a dividend yield of 3.44%, as of July 29.

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Disclosure: None.