Markus Andrews

A new law passed in January provides nearly 3 million people with Social Security benefit increases.
In a new update, the Social Security Administration says 91% of adjustments have been processed.
Here’s the latest on the status of those payments.

A Social Security Administration (SSA) office in Washington, DC, March 26, 2025. 
Saul Loeb | Afp | Getty Images

The Social Security Administration has now processed about 91% of cases related to a new law that is prompting higher benefits and lump-sum retroactive payments for nearly 3 million people, according to a new update from the agency.
The Social Security Fairness Act, which was signed into law in January, eliminated two provisions — the Windfall Elimination Provision, or WEP, and the Government Pension Offset, or GPO — that previously reduced benefits for individuals who also receive income from public pensions that did not require the payment of Social Security payroll taxes.

At the start of the year, the Social Security Administration said affected beneficiaries may have to wait more than one year to see their payments adjusted.
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The agency credits automation for helping it to expedite those payments.
The Social Security Administration currently plans to update all beneficiary records affected by the law by early November.
However, the agency is “working to exceed its estimate” under new commissioner Frank Bisignano, a Social Security Administration official said via email.

“Commissioner Bisignano committed to senators during his confirmation process that this would be finished ‘while the weather is warm’ and he will keep his promise,” the Social Security Administration official said.
Here’s the latest on the Fairness Act payments.

Who does the Social Security Fairness Act affect?

The Social Security Fairness Act, which was signed into law on Jan. 5, affects certain individuals who are eligible for Social Security benefits, but who also receive pensions from work that did not require the payment of Social Security payroll taxes.
Examples of those affected include teachers, firefighters and police officers; federal employees covered by the Civil Service Retirement System; and people who are covered by a foreign social security system, according to the Social Security Administration.
Notably, not everyone in those groups will receive a benefit increase, according to the agency. About 72% of state and local public employees pay Social Security taxes, and therefore were not affected by the new law, according to the agency.

The provisions that had previously been in place reduced Social Security benefits for more than 2.8 million people, according to SSA. To date, the agency has processed about 2.5 million cases, the agency said in its latest update.
Railroad Retirement Board beneficiaries also stand to receive adjusted annuity payments because of the law. New monthly annuity amounts for most individuals will begin in July, and one-time retroactive payments are due to arrive by the end of July, according to a Railroad Retirement Board spokeswoman.

How much are the benefit increases?

Individuals affected may see monthly Social Security check increases ranging from “very little” to more than $1,000 per month, according to SSA.
The changes will result in higher monthly payments ranging from $360 to $1,190, depending on individual circumstances, the Congressional Budget Office previously estimated. 
Affected beneficiaries will also see lump-sum payments dating back as far back as January 2024. Notably, Social Security benefit payments for January 2024 were received by beneficiaries in February 2024, according to the Social Security Administration.
For each beneficiary, the monthly benefit increases and any back payments are processed together, the Social Security official said.

Who is still waiting for benefit adjustments?

The Social Security Administration is now prioritizing the remaining complex cases that could not be automated, according to the Social Security official.
Those cases require additional time to manually update records to process both the retroactive and new benefits.
The roughly 300,000 individuals who are still waiting may have unique circumstances, notes David A. Weaver, a former Social Security Administration executive who currently teaches statistics at the University of South Carolina.
For example, some eligible beneficiaries who have recently died may qualify for the lump-sum retroactive payments, Weaver said. In those circumstances, the Social Security Administration would likely try to issue that money to survivors.

Others may be affected by overpayments, whereby the Social Security Administration issued benefit payments that were too high. In those cases, the agency will generally seek reimbursement for the excess sums that were issued.
In addition to the cases that require manual processing, there are people who are now newly eligible to apply for Social Security benefits as a result of the law, Weaver said.
Those individuals may need to file an application, according to the Social Security Administration. The date of the application may determine benefit start date and benefit amount.

What could happen next?

As the implementation of the Social Security Fairness Act moves to completion, it may be wise for Congress to ask the Government Accountability Office to audit that process, Weaver said.
That may allow for an evaluation of the final administrative costs for processing the benefit changes due to the law, including both the manual cases and additional new claims, as well as phone calls from the public about the changes, he said.
That investigation could also evaluate whether other agency work was sidelined as the benefit changes were processed, he said.
Have your Social Security benefits been affected by the Social Security Fairness Act? If you would be willing to share your story, email [email protected].
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Currently, many pass-through businesses use a workaround — the pass-through entity, or PTE, tax — to bypass the $10,000 limit on the federal deduction for state and local taxes, known as SALT.
The House-approved bill could block certain pass-through businesses from using the popular state-level tax break.
However, this provision could still face changes amid Senate negotiations.

Speaker of the House Mike Johnson, R-La., speaks to the media after the House narrowly passed a bill forwarding President Donald Trump’s agenda at the Capitol on May 22, 2025.
Kevin Dietsch | Getty Images

As Senate Republicans debate trillions of tax breaks advanced by the House, some business owners could be blocked from part of the proposed windfall, policy experts say.
If enacted as written, the House GOP’s “One Big Beautiful Bill Act” would raise the federal deduction limit for state and local taxes, known as SALT, to $40,000. That would phase out once income exceeds $500,000.

The bill would also boost a tax break for pass-through businesses, known as the qualified business income, or QBI, deduction, to 23%. But the measure would end a popular state-level SALT cap workaround for certain pass-through business owners.  
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Here’s what to know about the proposed change and who could be impacted.

SALT deduction cap ‘workaround’

Enacted via the Tax Cuts and Jobs Act, or TCJA, of 2017, there’s currently a $10,000 limit on the SALT deduction for filers who itemize tax breaks. This cap will expire after 2025 without changes from Congress. The SALT deduction was unlimited before TCJA, but the so-called alternative minimum tax reduced the benefit for some higher earners.
The cap has been a pain point in high-tax states like New York, New Jersey and California because residents can’t deduct more than $10,000 for SALT, which includes income, property and sales taxes.  

However, most states now have a “workaround” to bypass the federal SALT deduction limit for pass-through business owners, explained Garrett Watson, director of policy analysis at the Tax Foundation.

As of May 9, some 36 states and one locality, New York City, have enacted a workaround — the pass-through entity, or PTE, level tax — since the 2017 TCJA limitation, according to the American Institute of Certified Public Accountants, or AICPA.
While each state has different rules, the strategy generally involves paying individual state and local taxes through a pass-through business to sidestep the $10,000 cap, Watson said. Owners can then deduct their share of SALT paid.

How the SALT workaround could change

Certain white-collar professionals — doctors, lawyers, accountants, financial advisors and others — known as a “specified service trade or business,” or SSTB, can’t claim the qualified business income deduction once income exceeds certain limits.
As advanced, the House bill would block SSTBs from using the SALT deduction workaround, which would be “substantial” for those impacted, Watson said.
Meanwhile, some non-SSTB pass-through businesses would have two benefits under the House-approved bill. Depending on income, they could qualify for the bigger 23% QBI deduction. They could also still claim an unlimited SALT deduction via the PTE workaround, experts say.

The revised provision has faced some pushback among certain organizations.
“This loophole is likely expensive, and lawmakers and the public should demand a clear accounting of the fiscal cost to bless workarounds for this favored group,” New York University Tax Law Center deputy director Mike Kaercher said in a statement after the revised House bill text was released in late May. 
Some industry groups, such as AICPA, have urged the Senate to maintain the SALT deduction workaround for SSTBs.
If the House bill is enacted as written, SSTBs would be “unfairly economically disadvantaged” by existing as a certain type of business, AICPA wrote in a May 29 letter to the Senate.
Since many SSTBs can’t organize as a C corporation, there’s “no option to escape the harsh results of the SSTB distinction,” which could limit these professionals’ SALT deduction, AICPA wrote. More

The Trump administration has paused its plan to garnish Social Security benefits for those who’ve defaulted on their student loans.
But people’s wages are still at risk for collection efforts later this summer, the Education Dept. tells CNBC.
Here’s what borrowers should know.

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The Trump administration paused its plan to garnish Social Security benefits for those who have defaulted on their student loans — but says borrowers’ paychecks are still at risk.
“Wage garnishment will begin later this summer,” Ellen Keast, a U.S. Department of Education spokesperson, told CNBC.

Since the Covid pandemic began in March 2020, collection activity on federal student loans had mostly been on hold. The Biden administration focused on extending relief measures to struggling borrowers in the wake of the public health crisis and helping them to get current.
The Trump administration’s move to resume collection efforts and garnish wages of those behind on their student loans is a sharp turn away from that strategy. Officials have said that taxpayers shouldn’t be on the hook when people don’t repay their education debt.
“Borrowers should pay back the debts they take on,” said U.S. Secretary of Education Linda McMahon in a video posted on X on April 22.
Here’s what borrowers need to know about the Education Department’s current collection plans.

Social Security benefits are safe, for now

Keast said on Monday that the administration was delaying its plan to offset Social Security benefits for borrowers with a defaulted student loan.

Some older borrowers who were bracing for a reduced benefit check as early as Tuesday.
The Education Department previously said Social Security benefits could be garnished starting in June. Depending on details like their birth date and when they began receiving benefits, a recipient’s monthly Social Security check may arrive June 3, 11, 18 or 25 this year, according to the Social Security Administration.
More than 450,000 federal student loan borrowers age 62 and older are in default on their federal student loans and likely to be receiving Social Security benefits, according to the Consumer Financial Protection Bureau.
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The administration’s announcement gives borrowers more time to try to get current, and to avoid a reduced benefit check down the line.
“The Trump Administration is committed to protecting Social Security recipients who oftentimes rely on a fixed income,” said Keast.

Wages are still at risk

The Education Dept. says defaulted student loan borrowers could see their wages garnished later this summer.
The agency can garnish up to 15% of your disposable, or after-tax, pay, said higher education expert Mark Kantrowitz. By law, you must be left with at least 30 times the federal minimum hourly wage ($7.25) a week, which is $217.50, Kantrowitz said.
Borrowers in default will receive a 30-day notice before their wages are garnished, a spokesperson for the Education Department previously told CNBC.

During that period, you should have the option to have a hearing before an administrative law judge, Kantrowitz said. The Education Department notice is supposed to include information on how you request that, he said.
Your wages may be protected if you’ve recently been unemployed, or if you’ve recently filed for bankruptcy, Kantrowitz said.
Borrowers can also challenge the wage garnishment if it will result in financial hardship, he added. More

Social Security recipients do not need to worry about their benefits being garnished due to their defaulted student loans, at least for now.
The development is an abrupt change in policy by the administration, which had announced in April that it would be resuming collection activity on defaulted student loan borrowers.
The Education Dept. had said that Social Security benefit offsets could begin as early as June.

The U.S. Department of Education is seen on March 20, 2025 in Washington, DC. U.S. President Donald Trump is preparing to sign an executive order to abolish the Department of Education. 
Win Mcnamee | Getty Images News | Getty Images

The U.S. Department of Education is pausing its plan to garnish people’s Social Security benefits if they have defaulted on their student loans, a spokesperson for the agency tells CNBC.
“The Trump Administration is committed to protecting Social Security recipients who oftentimes rely on a fixed income,” said Ellen Keast, an Education Department spokesperson.

The development is an abrupt change in policy by the administration.
The Trump administration announced on April 21 that it would resume collection activity on the country’s $1.6 trillion student loan portfolio. For nearly half a decade, the government did not go after those who’d fallen behind as part of Covid-era policies.
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The federal government has extraordinary collection powers on its student loans and it can seize borrowers’ tax refunds, paychecks and Social Security retirement and disability benefits. Social Security recipients can see their checks reduced by up to 15% to pay back their defaulted student loan.
More than 450,000 federal student loan borrowers age 62 and older are in default on their federal student loans and likely to be receiving Social Security benefits, according to the Consumer Financial Protection Bureau.

The administration’s reprieve gives older student borrowers who’ve defaulted on their debt more time to try to get current, and to avoid a reduced benefit check down the line.
Carolina Rodriguez, director of the Education Debt Consumer Assistance Program in New York, recently told CNBC that she was especially concerned about the consequences of resumed collections on retirees.
“Losing a portion of their Social Security benefits to repay student loans could mean not having enough for food, transportation to medical appointments or other basic necessities,” Rodriguez said in an April interview. More

Shares of online sports betting platforms struggled Monday.
Illinois lawmakers passed a budget that included what one analyst described as a surprise tax increase on wagers.

Omar Marques | LightRocket | Getty Images

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DratKings & Flutter, 1-day

Both chambers of Illinois’ state legislature passed a budget that includes a tax of 25 cents per wager on the first 20 million online sports bets made each fiscal year, rising to 50 cents per bet after.
Illinois Gov. J.B. Pritzker issued a statement saying he would sign the budget, according to local news reports.
Truist analyst Barry Jonas called the duties a last-minute surprise, adding that it’s the second straight year of the state slapped an unexpected tax on the industry. Under the latest plan, Jonas said Illinois’ rate will be among the highest in the country.
Jonas said DraftKings and Flutter’s FanDuel should both “certainly” surpass 20 million wagers, meaning they’ll face the higher tax rate on a portion of their bets.
But Jonas called the impact for smaller competitors in the market more “modest.” Still, shares of MGM Resorts, which owns the BetMGM platform through a 50/50 joint venture with Entain, declined 1.5%. Penn Entertainment, partners in the ESPN Bet platform, shed 0.3%.

Now, Wall Street is left wondering if other states will follow Illinois’ lead and try and plug their budget deficits by either adopting or increasing online sports gambling taxes.
Statewide levies on digital sports bets at the start of 2024 ranged from 51% in New Hampshire, New York and Rhode Island to 6.75% in states like Nevada and Iowa, according to a report from the Tax Foundation. Only 27 states and D.C. allow online sports betting statewide, according to the nonprofit. More

A new policy is expected to prompt nearly 2 million more individuals to visit local Social Security offices every year.
Those trips may require driving times of over an hour, depending on where a person lives and where their closest agency office is located.
Here’s which states may present the longest travel times for seniors, according to a new analysis from the Center on Budget and Policy Priorities.

A Social Security Administration office in Washington, D.C., March 26, 2025.
Saul Loeb | Afp | Getty Images

A new Social Security Administration policy will require nearly 2 million additional beneficiaries to visit the agency’s offices each year to change their direct deposit information, according to agency estimates.
That’s often not a quick trip: Nearly one-quarter of seniors live more than an hour away from their local Social Security field office, according to a new analysis from the Center on Budget and Policy Priorities. Meanwhile, half of seniors need to drive for at least 33 minutes without traffic to get to their Social Security office.

The policy change will lead to more than 1 million hours of travel per year, according to the nonpartisan policy and research institute.

Why more people need to visit Social Security offices

The Social Security Administration said the new direct deposit requirements would curb fraud, which it said it’s been working to root out in coordination with the Trump administration’s so-called Department of Government Efficiency.
Since 2023, the agency has experienced a “marked increase” in allegations of direct deposit fraud, a Social Security Administration official said via email.
In March, SSA implemented enhanced fraud protection for direct deposit changes. Between March 29 and April 26, the enhanced fraud protection flagged more than 20,000 Social Security numbers where phone direct deposit requests failed security measures that check for multiple fraud indicators.
Of the direct deposit transactions flagged, 61% to 72% of individuals never resubmitted their requests, a “strong indicator” that many of those attempts may not have been legitimate, according to the SSA official.

The agency estimates $19.9 million in losses were avoided as a result of the enhanced safety measures.
However, advocates say the change is an overreaction, given the scale of such fraud. The Social Security Administration has said about 40% of direct deposit fraud comes from phone calls attempting to change direct deposit information.
In early 2024, anti-fraud officials at the agency told The New York Times that about 2,000 beneficiaries had their direct deposits redirected over the prior year. By those estimates, that would mean just 800 of those people experienced direct deposit fraud by phone, according to Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities. Yet the agency is now requiring about 2 million elderly and disabled individuals to visit its offices to prevent such fraud, she said.
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To help ensure benefit payments are not misdirected, the Social Security Administration has tightened beneficiaries’ ability to change their bank information over the phone.
As of April 28, individuals who want to change their direct deposit information will need to log into or create a personal My Social Security online account and obtain a one-time code before they call the agency’s 800 number.
Individuals who cannot use online or automatic enrollment services will need to visit a local field office to verify their identity in person. While the agency encourages those individuals to make an appointment, it is also possible to walk in for direct deposit changes.
Individuals who want to change their direct deposit information may also use automatic enrollment services through their bank. To do so, individuals need to contact their bank directly. Not all financial institutions participate in this process, according to SSA.

Because many seniors or disabled individuals do not have internet service, computers or smart phones — or if they do, may not know how to use those resources — many will likely have to make an in-person visit to their local Social Security office.
About 6 million seniors don’t drive, while almost 8 million older Americans have a medical condition or disability that makes it difficult for them to travel, according to CBPP research.

Where seniors may face longest drive times

In-person appointments may be burdensome for beneficiaries who face long travel times to get to their nearest Social Security office, according to the CBPP analysis.
In 31 states, more than 25% of seniors face travel times of more than an hour to get to their local field office.

In certain less-populated states, more than 40% of seniors would need to drive more than an hour. Those include Arkansas, Iowa, Maine, Mississippi, Montana, Nebraska, North Dakota, South Dakota, Vermont and Wyoming.
In other states, around 25% to 39% of seniors would need to travel over an hour. That includes Alabama, Alaska, Arizona, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Minnesota, Missouri, New Hampshire, New Mexico, North Carolina, Oklahoma, Oregon, South Carolina, Tennessee, West Virginia, Wisconsin and Virginia.
Residents of other states may also face a burden if they do not live near their closest Social Security field office.

The analysis is a conservative estimate to help assess how much time it may cost individuals who are affected by the policy, according to Devin O’Connor, senior fellow at the CBPP.
For example, it doesn’t take into account the time spent getting an appointment to visit a Social Security office and the time spent waiting for the appointment, he said.
The CBPP’s analysis was created with information from multiple sources including the 2022 National Household Travel Survey, SSA field office location data, the OpenTimes travel time database and the Census Bureau’s 2023 American Community Survey.
The Social Security Administration has not independently validated the data, the agency said via email in response to a request for comment.

Staffing cuts may add to appointment wait times

Notably, the new direct deposit requirements come as the Social Security Administration has moved to cut its work force by about 7,000 employees, reductions that have led some of the agency’s field offices to be “understaffed,” O’Connor said.
However, while it had been reported that DOGE planned to close Social Security field offices to help curb spending, thus far that has largely not happened, he said. The Social Security Administration has denied it plans to close local field offices.

Individuals who need to visit a Social Security field office will also be confronted by long wait times for appointments. Currently, just 43% of individuals are able to get a benefit appointment within 28 days, Social Security Administration data shows.
The agency’s new policy to limit phone transactions has been scaled back. The agency had proposed limiting the ability to apply for benefits over the phone, but after it received pushback from organizations including the AARP, the agency changed that policy to limit only direct deposit transactions. More

As the Senate debates President Donald Trump’s multi-trillion-dollar tax and spending package, there could be changes to the child tax credit.
If enacted as drafted, the House-approved bill would make permanent the maximum $2,000 credit and temporarily boost the top tax break to $2,500.
But “there’s some recognition here that they need do a little more,” said Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center.

Vera Livchak | Moment | Getty Images

As the Senate debates President Donald Trump’s multi-trillion-dollar tax and spending package, there could be changes to the child tax credit, policy experts say.
If enacted as drafted, the House-approved bill would make permanent the maximum $2,000 credit passed via Trump’s 2017 tax cuts — which could otherwise revert to $1,000 after 2025 without action from Congress.

The highest credit would also rise to $2,500 from 2025 to 2028. After that, the credit’s top value would revert to $2,000 and be indexed for inflation.
But the Senate could have different plans, and negotiations will be “really interesting to watch,” said Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center.
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The proposed higher child tax credit comes as the U.S. fertility rate hovers near historic lows, which has been a concern for lawmakers, including the Trump administration.
Some research suggests financial incentives, like a bigger child tax credit, could boost U.S. fertility. But other experts say it won’t solve the issue long-term.

As the Senate prepares to debate Trump’s mega-bill, here’s how the child tax credit could change.

Republican child tax credit support

While Democrats have long pushed for a child tax credit expansion, there has also been a more recent bipartisan push for changes.
Vice President JD Vance, who formerly served as Senator of Ohio, floated a higher child tax credit during the campaign in August.   
“I’d love to see a child tax credit that’s $5,000 per child. But you, of course, have to work with Congress to see how possible and viable that is,” he told CBS’ “Face the Nation.”
Sen. Josh Hawley, R-Mo., in January also called on the Senate floor for a $5,000 child tax credit. His proposal would apply the credit to payroll taxes and provide advance payments throughout the year. 
“There’s some recognition here that they need do a little more,” Gleckman said.

Credit ‘refundability’ could change

Often, tax credits don’t benefit the lowest earners unless they are “refundable,” meaning filers can still claim without taxes owed. Nonrefundable credits can lock out those consumers because they often don’t have tax liability.
House lawmakers in January 2024 passed a bipartisan child tax credit expansion, which would have improved access and retroactively boosted the refundable portion.
While the bill failed in the Senate in August, Republicans said they would revisit the measure. 
However, the child tax credit in the latest House-approved bill is less generous than the provision passed in 2024, policy experts say.
As written, the House plan provides no additional benefit to 17 million children from low-income families who can’t claim the full $2,000 credit, Margot Crandall-Hollick, principal research associate at the Urban-Brookings Tax Policy Center, wrote in May. More

The Home Depot logo is displayed outside a store on March 10, 2025 in San Diego, California.
Kevin Carter | Getty Images

Earnings of major U.S. companies and the uncertainty around tariffs continued to impact investor sentiment this week. While the stock market remains volatile, investors seeking consistent returns could add some attractive dividend stocks to their portfolios.
In this regard, stock picks of top Wall Street analysts can be helpful, as the recommendations of these experts are based on in-depth analysis of a company’s financials and ability to pay dividends.

Here are three dividend-paying stocks, highlighted by Wall Street’s top pros, as tracked by TipRanks, a platform that ranks analysts based on their past performance.

Home Depot

This week’s first dividend pick is Home Depot (HD). The home improvement retailer reported mixed results for the first quarter of fiscal 2025 but reaffirmed its full-year guidance. The company expressed its intention to maintain its prices and not increase them in response to tariffs.
Home Depot declared a dividend of $2.30 per share for the first quarter of 2025, payable on June 18, 2025. At an annualized dividend of $9.20 per share, HD stock offers a dividend yield of 2.5%.
Following the Q1 FY25 results, Evercore analyst Greg Melich reiterated a buy rating on HD stock with a price target of $400. The analyst thinks that the risk/reward profile of Home Depot stock is one of the best in Evercore’s coverage. 
Melich contends that while Home Depot’s headline results appear ordinary, he believes that a notable inflection has begun. The analyst highlighted certain positives in Home Depot’s Q1 performance, including stabilizing traffic, improving shrink (inventory lost due to theft or other reasons) rates, and acceleration in online sales growth to 8% after staying lower than 5% since Q3 FY22.   

“HD remains a benchmark retailer, investing in technology, multichannel and stores, even while current demand remains low,” concluded Melich. He continues to believe that once the macro environment improves, Home Depot could be the “next great Consumer/Retail breakout multiple stock” like Costco in 2023 and Walmart in 2024.
Melich ranks No. 607 among more than 9,500 analysts tracked by TipRanks. His ratings have been profitable 68% of the time, delivering an average return of 12%. See Home Depot Ownership Structure on TipRanks.

Diamondback Energy

Next on this week’s list is Diamondback Energy (FANG), an independent oil and gas company that is focused on onshore reserves, mainly in the Permian Basin in West Texas. FANG delivered better-than-expected first-quarter results. However, given the ongoing commodity price volatility, Diamondback reduced its full-year activity to maximize free cash flow generation.
Meanwhile, the company returned $864 million to shareholders in Q1 2025 through stock repurchases and a base dividend of $1.00 per share. FANG’s Q1 2025 capital return represented roughly 55% of adjusted free cash flow. Based on the base and variable dividends paid over the past 12 months, FANG stock offers a dividend yield of nearly 3.9%.
In a recent research note, RBC Capital analyst Scott Hanold reaffirmed a buy rating on FANG stock with a price target of $180. Hanold noted that while the company lowered its 2025 capital budget by $400 million or 10% to $3.4 – $3.8 billion, the production outlook was cut by only 1%.
The analyst stated that Diamondback’s move to reduce its capital spending plan increased his free cash flow estimate by 7% over the next 18 months. Hanold thinks that the company’s decision will not weigh on its operational momentum or the ability to efficiently return to its 500 Mb/d productive capacity.
Commenting on FANG’s free cash flow priorities, Hanold noted that the company is tracking ahead of its 50% minimum shareholder return target, thanks to stock buybacks amid the pullback in shares, mainly during early April. He expects the company to use the remaining free cash flow to pay down the $1.5 billion term loan related to its Double Eagle-IV acquisition in the Midland Basin, which was announced in February.
Overall, Hanold’s bullish thesis on FANG stock remains intact, and he believes that “FANG has one of the lowest cost structures in the basin and a corporate cash flow break-even (including dividend) that is among the best in the industry.”
Hanold ranks No. 17 among more than 9,500 analysts tracked by TipRanks. His ratings have been profitable 67% of the time, delivering an average return of 29.1%. See Diamondback Energy Insider Trading Activity on TipRanks.

ConocoPhillips

Another dividend-paying energy stock in this week’s list is ConocoPhillips (COP). The oil and gas exploration and production company reported market-beating earnings for the first quarter of 2025. Given a volatile macro environment, the company reduced its full-year capital and adjusted operating cost guidance but maintained its production outlook.
In Q1 2025, ConocoPhillips distributed $2.5 billion to shareholders, including $1.5 billion in share repurchases and $1.0 billion via ordinary dividends. At a quarterly dividend of $0.78 per share (annualized dividend of $3.12), COP stock offers a yield of about 3.7%.
Following investor meetings with management in Boston, Goldman Sachs analyst Neil Mehta reiterated a buy rating on COP stock with a price target of $119. Mehta highlighted that management sees significant uncertainty in oil prices in the near term due to concerns about economic growth and voluntary production cuts by OPEC+. That said, the company is bullish about long-term gas prices.
Meanwhile, the analyst expects COP’s breakeven to shift lower in the times ahead, with major growth projects on track. Mehta stated that while the benchmark price of West Texas Intermediate crude oil – also known as WTI – breakeven (before dividend) is in the mid $40s in 2025, he sees the breakeven heading towards the low $30s once COP’s LNG spending comes down and production at its Willow project in Alaska comes online in 2029.
Commenting on COP’s shareholder returns, Mehta stated that management acknowledged that their decision not to stick with the $10 billion capital return target led to short-term volatility in COP stock. That said, COP still offers a “compelling” return, which Mehta estimates will be 8%.
Mehta ranks No. 568 among more than 9,500 analysts tracked by TipRanks. His ratings have been successful 59% of the time, delivering an average return of 8.6%. See ConocoPhillips Hedge Fund Trading Activity on TipRanks. More