Diamondback Energy-Top Wall Street analysts like these dividend-paying energy stocks

Core Viewpoint - Concerns about a potential recession and tariff policies are impacting markets, but dividend stocks are seen as a stabilizing investment option for portfolios [1] Group 1: Energy Transfer (ET) - Energy Transfer is a midstream energy company with over 130,000 miles of pipeline and related infrastructure in the U.S. [3] - The company paid a quarterly cash distribution of $0.3250 per common unit in February, marking a 3.2% year-over-year increase, and offers a dividend yield of 7.5% [3] - Analyst Elvira Scotto from RBC Capital views Energy Transfer favorably, citing the company's diversified cash flow streams and fee-based cash flow as key strengths [4][5] - Scotto slightly lowered the price target for ET from$ 23 to $22 due to market uncertainty but reaffirmed a buy rating [5] Group 2: The Williams Companies (WMB) - The Williams Companies is another midstream energy player, with a recent dividend increase of 5.3% to$ 2.00 annually, providing a dividend yield of 3.4% [7] - Key drivers for WMB stock include AI/data center growth opportunities and natural gas demand, which is expected to remain stable compared to crude oil [8] - Scotto maintains a buy rating on WMB with a price target of $63, anticipating strong volumes across segments despite some headwinds in the Northeast [10] Group 3: Diamondback Energy (FANG) - Diamondback Energy focuses on onshore oil and natural gas reserves in the Permian Basin and announced an 11% increase in its annual base dividend to$ 4 per share, resulting in a dividend yield of 4.5% [12] - Analyst Arun Jayaram expects FANG's Q1 results to align with market estimates, projecting a cash flow per share of $8.12 [13] - FANG is anticipated to generate free cash flow of approximately$ 1.4 billion, with a significant portion allocated to dividends and share buybacks [15]