Diamondback Energy surged on Tuesday after the oil explorer said it would increase its base dividends from $2.80 to $3 per common share annually, a 7.1% jump, beginning at the end of the month. The implied annual dividend yield is 2.5%, based on Friday’s closing price. 

The company will also continue the common stock repurchase program it started in September last year. Diamondback (FANG) has bought back approximately $690 million worth of shares and plans to spend up to $2 billion. 

“The…