This Oil Stock Just Boosted Its Dividend Yield to a Jaw-Dropping 9.7%

Diamondback Energy (NASDAQ: FANG) has delivered impressive dividend growth since initiating a payout in 2018. Given the surge in oil prices this year, the oil company recently took its dividend to another level by adding a variable payment to return more of its cash flow to shareholders. Its combined dividend for the first quarter implies a yield of 9.7% on its recent stock price. If oil prices remain elevated, Diamondback Energy could continue to pay out a gusher of dividends.

Diamondback Energy is cashing in on this year's surge in crude prices. The oil company generated $1.4 billion in cash flow during the first quarter, more than enough to cover the $444 million it invested in drilling and completing new oil wells. That enabled the company to produce $974 million of free cash flow during the first quarter, up 26% from the fourth quarter.

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Source Fool.com