Core Viewpoint - Major U.S. companies' earnings and tariff uncertainties are affecting investor sentiment, leading to a focus on attractive dividend stocks for consistent returns [1][2] Group 1: Home Depot (HD) - Home Depot reported mixed Q1 FY2025 results but reaffirmed its full-year guidance, maintaining prices despite tariffs [3][4] - The company declared a dividend of 2.30pershareforQ12025,resultinginanannualizeddividendof9.20 per share and a yield of 2.5% [3] - Analyst Greg Melich from Evercore reiterated a buy rating with a price target of 400,highlightingstabilizingtrafficandimprovedonlinesalesgrowth[4][5]−MelichbelievesHomeDepotcouldbecomeasignificantbreakoutstockoncethemacroenvironmentimproves,similartoCostcoandWalmart[6]Group2:DiamondbackEnergy(FANG)−DiamondbackEnergydeliveredbetter−than−expectedQ1resultsbutreduceditsfull−yearactivitytomaximizefreecashflowduetocommoditypricevolatility[8]−Thecompanyreturned864 million to shareholders in Q1 2025 through stock repurchases and a base dividend of 1.00pershare,resultinginayieldofnearly3.9180, noting a 10% reduction in the capital budget but only a 1% cut in production outlook [10][11] - Hanold expects Diamondback to exceed its 50% minimum shareholder return target and plans to use remaining free cash flow to pay down a 1.5billiontermloan[12][13]Group3:ConocoPhillips(COP)−ConocoPhillipsreportedmarket−beatingQ12025earningsbutreduceditsfull−yearcapitalandadjustedoperatingcostguidancewhilemaintainingproductionoutlook[14]−Thecompanydistributed2.5 billion to shareholders in Q1 2025, including 1.5billioninsharerepurchasesand1.0 billion in ordinary dividends, resulting in a yield of about 3.7% [15] - Analyst Neil Mehta from Goldman Sachs reiterated a buy rating with a price target of 119,highlightinguncertaintyinoilpricesbutoptimismaboutlong−termgasprices[16][18]−MehtaexpectsCOP′sbreakeventodecrease,projectingittoheadtowardsthelow30s as LNG spending decreases and production from the Willow project begins in 2029 [17]
Diamondback Energy(FANG) CNBC·2025-06-01 11:28