This Oil Stock Is Pumping Up Its Dividend Yield to 10%

Diamondback Energy (NASDAQ: FANG) is making a case for being one of the best dividend stocks in the oil patch. The oil producer announced plans to increase its base dividend once again, continuing the upward trend in the payout since initiating it in 2018. On top of that, Diamondback is increasing the amount of free cash flow it returns to investors each quarter. A meaningful portion of that return will likely come in the form of variable dividends in the future.

For the current quarter, those two dividends add up to an implied yield of 10% at the stock's current price. That makes Diamondback Energy an attractive option for investors seeking a high-octane passive income stream.

Diamondback Energy unveiled plans to increase its base quarterly dividend to $0.75 per share ($3 per share annualized). That's 7.1% above its prior payout and pushes the base dividend yield to 2.5% at the current share price, well above the S&P 500's 1.6% dividend yield.

Source Fool.com