Viper Energy (VNOM) – One of the Best High Yield Energy Stocks to Buy Now

Viper Energy, Inc. (NASDAQ:VNOM) is included among the 11 Best High Yield Energy Stocks to Buy Now.

Viper Energy, Inc. (NASDAQ:VNOM) is a publicly traded Delaware corporation focused on owning and acquiring mineral and royalty interests, primarily in the Permian Basin.

On October 23, Jefferies analyst John Edelman initiated coverage of Viper Energy, Inc. (NASDAQ:VNOM) with a price target of $38 and a ‘Hold’ rating, held back by high valuation and the oil price risk in the current cycle. The analyst firm is awaiting a better entry point before recommending to invest in the stock.

Viper Energy, Inc. (NASDAQ:VNOM) completed the acquisition of Sitio Royalties this August, and the analyst expects the deal to be around 15% accretive to the company’s cash flow per share and 13% accretive to earnings per share. However, the diversification away from Diamondback Energy (the majority shareholder of VNOM) has raised some concerns around Viper’s historical strategy as a Permian pure play with strong ties to its parent.

Viper Energy, Inc. (NASDAQ:VNOM) increased its quarterly dividend by 10% to $0.33 per share in August, in addition to announcing a variable cash dividend of $0.20 per share. The stock boasts a hefty dividend yield of 6.28% as of the writing of this piece.

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Disclosure: None.