Red-Hot Energy Companies Among 5 'Strong Buy' Stocks With Expected Dividend Hikes This Week

The company primarily focuses on the development of the Spraberry and Wolfcamp formations of the Midland basin, as well as the Wolfcamp and Bone Spring formations of the Delaware basin, which are part of the Permian Basin.

Diamondback Energy holds working interests in 4,326 gross producing wells, as well as royalty interests in 4,553 additional wells. In addition, the company owns mineral interests approximately 787,264 gross acres and 24,350 net royalty acres in the Permian Basin and Eagle Ford Shale, and it owns, operates, develops and acquires midstream infrastructure assets, including 927 miles of crude oil gathering pipelines, natural gas gathering pipelines and an integrated water system in the Midland and Delaware Basins of the Permian Basin.

Shareholders receive a 1.85% dividend. The dividend is expected to rise by a dime per share to $0.70. The $200 Raymond James price target is well above the $176.86 consensus target. Diamondback Energy stock ended Friday at $126.23 a share.

Packaging Corp. of America

This company should continue to do well, especially if the economy does not totally bog down. Packaging Corporation of America (NYSE: PKG) manufactures and sells containerboard and corrugated packaging products in the United States.

The Packaging segment offers various containerboard and corrugated packaging products, such as conventional shipping containers used to protect and transport manufactured goods, multicolor boxes and displays that help to merchandise the packaged product in retail locations and honeycomb protective packaging products, as well as packaging for meat, fresh fruit and vegetables, processed food, beverages and other industrial and consumer products. This segment sells its corrugated products through a direct sales and marketing organization, independent brokers and distribution partners.

The Paper segment manufactures and sells commodity and specialty papers, as well as communication papers, including cut-size office papers and printing and converting papers. This segment sells white papers through its sales and marketing organization.

Shareholders currently receive a 2.47% dividend. The company is expected to lift the dividend to $1.20 from $1.00. The Packaging Corporation of America stock price target at Truist Financial is $182. The consensus target of $167.40 is closer to Friday’s close at $161.17.

These five top blue-chip companies with stocks rated Buy across Wall Street are expected to lift the dividends they pay to shareholders. Not only is increasing dividends and returning capital to investors important, but it also shows that the company is doing well and has the earnings and cash flow strength to increase the payouts.

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