If it’s passive income you’re after, Woodside Energy Group Ltd (ASX: WDS) shares are well worth investigating.
With the exception of 2020, when oil prices cratered amid the global COVID lockdowns, Woodside has paid out two fully franked dividends a year for more than a decade.
And with oil prices leaping higher this year in the wake of the Middle East conflict, those dividends are becoming more attractive. Not to mention the more than 40% share price gains Woodside has posted in 2026.
So, just how many shares in the S&P/ASX 200 Index (ASX: XJO) energy stock do you need to buy for $5,000 a year in passive income?
We’ll get to that in a tick. But firstâ¦
An important reminder
Before we dig into the numbers, an important reminder.
The first dividend yield figure we use below is based on Woodside’s final dividend, which the company paid on 27 March. The second comes from the interim dividend that Woodside declared when it released its half-year results yesterday.
That means we’re working partly with the pending dividend yield and partly with a trailing yield. Future yields may be higher or lower depending on a range of company-specific and macroeconomic factors.
And adding another wrinkle to our passive income calculations, Woodside declares its dividend in US dollars. The company will release the Aussie dollar equivalent on 9 September.
That may not be the spot exchange rate on the day, however, but rather based on an average exchange rate over a few week period.
With these variables in mindâ¦
Drilling into Woodside shares for a $10,000 annual passive income
In March, Woodside paid eligible stockholders a fully franked 83.5 cent per share final dividend.
On Tuesday, the ASX 200 oil and gas stock declared a fully franked interim dividend of 57 US cents per share.
Going by today’s exchange rate (and noting this could be different from the average rate Woodside employs on 9 September), that equates to 79.7 Aussie cents per share.
If you want to bank that interim passive income payout, you’ll need to own Woodside shares at market close on 2 September. Woodside trades ex-dividend on 3 September. You can then expect those dividends to hit your bank account on 25 September.
So, based on the above figures, Woodside’s full-year dividend payout is likely to be around AU$1.632 per share.
For $10,000 a year in passive income, you’d need to buy 6,128 shares today.
At the recent share price of $33.26, Woodside trades on a fully franked dividend yield (partly trailing and partly pending) of around 4.9%. Taking those franking credits into account, that equates to a grossed-up yield of around 7.0%.
The post How many Woodside shares do I need to buy to earn $10,000 a year in passive income? appeared first on The Motley Fool Australia.
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Motley Fool contributor Bernd Struben 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 Scott Phillips.