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

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

Dividend Yield as of December 28: 6.51%

Quarterly Performance as of December 28: 13.65%

Total Expected Return: 36%

Number of Hedge Fund Holders: 55

Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company engaged in the acquisition, development, exploration and production of oil and natural gas properties in the Permian Basin in West Texas and New Mexico. As of September 30, Yacktman Asset Management is the top shareholder in Diamondback Energy, Inc. (NASDAQ:FANG) and has a position worth $152 million in the company.

On November 7, Diamondback Energy, Inc. (NASDAQ:FANG) posted earnings for the fiscal third quarter of 2022 in which the company outperformed both EPS and revenue consensus. The company reported an EPS of $6.48 and beat Wall Street estimates by $0.11. The company’s revenue for the quarter amounted to $2.44 billion, up 27.59% year over year and ahead of expectations by $13.55 million.

As of December 28, Diamondback Energy, Inc. (NASDAQ:FANG) has gained 13.65% in the fourth quarter of 2022 and is offering a dividend yield of 6.51%. Morgan Stanley analysts see a further potential upside of roughly 20%. Diamondback Energy, Inc. (NASDAQ:FANG) is one of the best dividend stock picks of Morgan Stanley’s quant screen.

At the close of the third quarter of 2022, 55 hedge funds were long Diamondback Energy, Inc. (NASDAQ:FANG) and held collective stakes of $910.9 million in the company.