Top analysts raise targets on 3 energy dividend stocks
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- Exxon Mobil (XOM) has raised its dividend for 43 consecutive years, paying an annualized $4.12 per share for a 2.6% yield; Morgan Stanley analyst Devin McDermott lifted his price target to $177 from $168, arguing integrated energy stocks have lagged pure-play refiners and now offer relative-value opportunities.
- Expand Energy (EXE) declared a $0.575 quarterly base dividend (annualized $2.30, ~2.3% yield); Goldman Sachs analyst Neil Mehta raised his price target to $113 from $99, citing an 11% FCF yield versus a 9% peer average and lifting his FY28 FCF/share estimate to ~$10 (from a prior ~$8 at a $3.50/MMBtu Henry Hub mid-cycle assumption).
- Twin Eagle, Expand Energy's pending $1.25 billion acquisition, is expected to expand the combined business into premium power and LNG markets — a key driver behind Mehta's higher $113 price target.
- Diamondback Energy (FANG) paid a $1.10 quarterly base dividend for Q2 (2.2% yield); Mehta raised his price target to $220 from $212, citing capital-efficient Permian Basin operations and the removal of a minimum return-of-capital commitment that gives management more allocation flexibility.
- Diamondback's Q2 2026 production volumes hit 1,018 Mboe/d, exceeding the high end of company guidance thanks to stronger-than-expected natural gas output from its Barnett development and improved downstream gas marketing.
Why it matters: Two of TipRanks' tracked analysts — McDermott (No. 726) and Mehta (No. 449) — raised price targets on all three names while rating them buys, citing lagged integrated-energy valuations, an 11% FCF yield above the 9% peer average, and a Q2 production beat of 1,018 Mboe/d. For income investors, these are dividend payers where top-ranked analysts just turned more constructive on forward cash flow.
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