5 Best NASDAQ Stocks to Buy for Dividends

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

Number of Hedge Fund Holders: 52

Dividend Yield as of June 25: 2.27%

Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company, focused on the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.

On June 22, Roth Capital upgraded Diamondback Energy, Inc. (NASDAQ:FANG) from ‘Neutral’ to ‘Buy’, while also boosting its price objective on the stock from $205 to $212. The revised target represents an upside of over 15% from the current share price.

The analyst firm upgraded several exploration and production companies, arguing that crude oil prices are nearing a short-term bottom with a potential Middle East war ceasefire “seeming tenuous”. Roth noted that many oil-focused E&P companies have seen their share prices fall b 15%-25% from their YTD peaks, creating more attractive entry points for investors.

The firm expects the damage to key Middle East oil infrastructure to have a lasting impact and anticipates more oil volumes to flow through the waterway of Hormuz, but it believes that these factors have already been largely incorporated into energy stock valuation. Roth expects oil prices to stabilize around the $75 per barrel mark in the near-term.