The Woodside (ASX:WPL) share price is now trading on a forecast 2.3% fully franked dividend yield

How does the ASX energy share stack up against its peers when it comes to dividend yield?

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It's been a disappointing 2021 so far for the Woodside Petroleum Limited (ASX: WPL) share price. Shares in Australia's oil and gas production giant have fallen 5.0% lower to $21.91 as at Wednesday's close.

We're now well in the swing of the August reporting season. Woodside investors will be waiting in anticipation for the company's half-year results release on Wednesday 18 August.

As it stands, the Woodside share price is trading at a 2.3% forward dividend yield. Let's explore a little bit more about what that means and how it compares to Woodside's ASX peers.

Woodside share price dividend yield

There are a couple of ways to calculate a dividend yield – a commonly cited valuation metric for shares. It can either be done on a trailing (i.e. actual, historical payments) or forward (forecast or blended) basis.

According to The Motley Fool calculations, the Woodside share price is currently priced with a 2.3% dividend yield.

At the current $21.91 share price, that means the forecast full-year dividend for the Aussie energy share is roughly 51.5 cents per share. That is almost exactly the same as the FY2021 combined distributions of 51.6 cents (15.3 cents paid in March 2021 and 36.25 cents paid in September 2020).

The Woodside share price is trading on a higher dividend yield relative to its ASX peers. Santos Ltd (ASX: STO) shares are trading on a 1.43% dividend yield with Oil Search Ltd (ASX: OSH) shares at 0.16%.

Foolish takeaway

It's useful to analyse multiple metrics when considering investments. A company's dividend yield is simply a dividend estimate (or past dividend) divided by the current share price.

The Woodside share price has struggled to climb higher in 2021. That means the denominator in the dividend yield calculation is lower, making its yield higher.

Keen-eyed investors will be watching the 18 August results for further commentary and earnings outlooks to help guide dividend expectations going forward.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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