Many investors will be upping their search for fully franked dividend shares after the RBA slashed cash rates to just 1% today.
One option could be look to blue-chip oil and LNG giant Woodside Petroleum Limited (ASX: WPL) shares if the analysts at Goldman Sachs are on the money.
Back in April 2019 the analysts took a look at Woodside's operational update for the quarter ending March 31 2019 and came away with a positive view.
"Woodside continues to make progress on all fronts, with negotiations progressing well on Browse and Scarborough projects, while FID on Senegal is now targeted for mid-2019. We continue to sit toward the top end of the unchanged 2019 production guidance of 88-94mmboe with our positive view on Woodside underpinned by a 5% production CAGR to 2021, de-risking of the Browse and Scarborough projects towards FID in 2020 and 2021 respectively," commented the analysts.
The analysts also note that Woodside shares offer investors an impressive dividend yield.
On a trailing 12 month basis the LNG giant has paid $1.998 per share in dividends to place it on a 5.4% yield plus full franking credits based on a share price of $36.74 today. If this dividend turned out to be sustainable or grew it could be a good bet for income seekers.
However, as Goldman's also notes fundamental uncertainty over the future direction of the oil price is "high" due to the complex geopolitical picture around large producers such as Iran, Venezuela and the U.S. among others. Woodside is leveraged to the oil price and any downturn could drag profits, dividends and the share price down with it.
Goldman's has a 12 month price target of $36.74 on the shares.
