Diamondback Energy, Inc. (FANG) will raise its quarterly dividend by fifty percent to 18.75 cents per share in the second quarter of 2019. Last year the company initiated its dividend and this is the first hike.

The next dividend is payable on June 4, 2019, to stockholders of record at the close of business on May 28, 2019. A new annual rate of 75 cents per share yields 0.7% at a stock price of $108.24.

"While the consistent growth of our dividend remains our primary return of capital objective, this repurchase program represents the next step in our total return strategy, and signifies Diamondback's evolution from a small cap producer to the large cap Permian pure-play we are today.  Our capital allocation philosophy is grounded on achieving above average year over year growth, supporting a growing dividend, reducing debt consistently and continuing to replace and maintain a deep inventory of Tier 1 acreage, with excess free cash flow to be returned to stockholders.  This program is initially targeted toward a stock repurchase program due to our view that buying our stock currently represents substantial value, but we will consider other forms of capital return in the future if we determine them to be effective methods of driving stockholder value."

Diamondback Energy, Inc. is an independent oil and natural gas company. The company focuses on the acquisition, development, exploration and exploitation of unconventional onshore oil and natural gas reserves in the Permian Basin in West Texas. The company's operations are directed primarily at the large acreage areas of the Clearfork, Spraberry, Wolfcamp, Cline, Strawn and Atoka formations, collectively known as the Wolfberry Trend. Diamondback Energy became a public company in 2012 and initiated a quarterly dividend in 2018.