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Dividend stocks in focus during market volatility

The dividend stocks drawing attention on Wall Street have returned to investors’ radar as inflation data, corporate earnings and Middle East-related tensions continue to shape a volatile market backdrop. In the latest analyst calls tracked by TipRanks, buy ratings were maintained on three energy-sector companies while price targets were revised higher.

The yields on the stocks highlighted by analysts are clustered at similar levels:

  • Exxon Mobil: $1.03 per share quarterly, $4.12 annualized dividend and a 2.6% yield.
  • Expand Energy: $0.575 per share quarterly base dividend, $2.30 annualized and about a 2.3% yield.
  • Diamondback Energy: $1.10 per share cash dividend for the second quarter of 2026 and a 2.2% yield.

Cash-flow outlook improves for Exxon Mobil

Morgan Stanley analyst Devin McDermott reiterated his buy rating on Exxon Mobil and lifted his price target to $177 from $168. The analyst said he upgraded his free cash flow estimates after factoring in second-quarter guidance and the path of oil prices.

According to McDermott, rising refining margins are providing support for integrated energy companies. He raised his free cash flow estimates for the second half of 2026 by an average of 20% and by 7% for 2027, citing strong production volumes, high-value projects and more than $5 billion in structural cost savings as key pillars for Exxon Mobil.

The company’s dividend record also stands out. Exxon Mobil has increased its dividend for 43 consecutive years, and the analyst said its strong balance sheet makes the stock a more defensive choice in an uncertain macro environment.

Higher targets for Expand Energy and Diamondback Energy

Expand Energy: acquisition and buyback potential

Goldman Sachs analyst Neil Mehta kept his buy rating on Expand Energy and raised his price target to $113 from $99. In his review, he pointed to a stronger cash-flow outlook, potential shareholder returns and a 11% free cash flow yield based on 2027-2028 estimates, compared with a 9% peer average.

The analyst said free cash flow per share in fiscal 2028 could rise to $10 from an earlier estimate of about $8. He also noted that the company’s announced $1.25 billion Twin Eagle acquisition could improve the combined company’s access to premium markets and expand deal opportunities in energy and LNG end markets.

Production and capital flexibility at Diamondback Energy

Mehta also reiterated his buy recommendation for Diamondback Energy and raised his price target to $220 from $212. He said the company stands out for production growth with strong capital efficiency in an environment where oil prices remain elevated because of persistent supply disruptions in the Middle East.

The analyst also said removing the commitment to a minimum capital return would give management more flexibility in capital allocation during periods of oil-price volatility. The company’s second-quarter 2026 output of 1.018 Mboe/d, which exceeded the high end of its own guidance, was linked to strong natural gas production from Barnett development and improved downstream gas marketing.

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