Here’s everything you need to know about the Woodside dividend

Woodside Energy Group Ltd (ASX: WDS) shares are pushing higher on Tuesday.

In afternoon trade, the energy giant’s shares are up 1% to $30.32.

This follows the release of Woodside’s full-year results for FY 2023 and the announcement of its final dividend.

Woodside results summary

During FY 2023, Woodside delivered a strong operational result, which was undone by falling energy prices.

The company reported a 17% decline in operating revenue to US$13,994 million after lower prices across all commodities offset higher sales volumes.

And with production costs rising slightly year on year, the company’s underlying net profit after tax was down 37% to US$3,320 million. This excludes non-cash post-tax asset impairments of US$1,533 million relating to Shenzi asset.

The Woodside dividend

It will come as no surprise to learn that the company was forced to cut its dividend in FY 2023 in line with its dividend policy.

As a reminder, the Woodside dividend policy is to pay a minimum of 50% of underlying net profit after tax with a target payout ratio of between 50% and 80%.

The Woodside board cut its fully franked final dividend by 58% to 60 US cents per share, bringing its FY 2023 dividend to a total of US$1.40 per share. This is down 45% year on year but represents approximately 80% of underlying net profit after tax.

Based on current exchange rates, this equates to 91.8 Australian cents per share for the final dividend and A$2.14 per share for FY 2023.

And based on the current Woodside share price of $30.32, it means yields of 3% and 7%, respectively, for investors.

Commenting on the dividend, chairman Richard Goyder AO said:

We achieved strong financial performance in 2023. While oil and gas prices eased from 2022’s record highs, robust product demand continued. In 2023, we recorded an annual net profit after tax of $1.7 billion and an underlying net profit after tax of $3.3 billion. Based on this, the Board has determined a fullyfranked final dividend of 60 US cents per share, resulting in a total full-year dividend of 140 US cents per share.

When is pay day?

Woodside shares will be trading ex-dividend for its final distribution next week on 7 March.

After which, it will be paid to eligible shareholders the following month on 4 April.

The company’s dividend reinvestment plan remains suspended.

The post Here’s everything you need to know about the Woodside dividend appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Woodside share price rises despite 74% decline in FY23 profits
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• Woodside shares rise on $2.1 billion sale and partnership
• 2 cheap ASX stocks that offer more than 8% dividend yields

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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.

from The Motley Fool Australia https://ift.tt/TZQG5tf