It's a good day to be an owner of Woodside Energy Group Ltd (ASX: WDS) shares.
That's because it is payday for eligible shareholders, with the energy giant's monster dividend hitting bank accounts today.
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The Woodside dividend
In February, Woodside released its full-year results for FY 2022. These were the first set of results since its merger with the petroleum assets of BHP Group Ltd (ASX: BHP).
Thanks to a combination of merger benefits (increased volumes), higher realised prices, and a strong operational performance, Woodside reported a 142% increase in operating revenue to US$16,817 million.
Things were even better on the bottom line, with Woodside's profits more than tripling over the 12 months. It posted a 223% increase in underlying net profit after tax to a record of US$5,230 million.
However, given its increased share count from the BHP merger, its dividends per share didn't grow as quickly as its earnings. Though, that doesn't mean it didn't pay a bumper final dividend!
The Woodside final dividend came in 37% higher year over year at a record of US$1.44 per share. This brought its full-year dividend to US$2.53 per share, which was an increase of 87% year over year and represents a total distribution of US$4,804 million.
The US$1.44 (A$2.154) per share final Woodside dividend that is being paid today equates to a sizeable 6.3% yield based on its current share price. Not bad at all!
What's next?
The good news is that the Woodside dividend looks set to remain a very attractive option for income investors in the coming years.
According to a note out of Citi, it is forecasting the following fully franked dividends:
- FY 2023: $2.63 per share
- FY 2024: $2.56 per share
- FY 2025: $2.21 per share
This will mean dividend yields of 7.7%, 7.5%, and 6.5%, respectively, over the next three financial years.
