The whopper Woodside dividend is being paid today. Here’s the lowdown

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.

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.

The post The whopper Woodside dividend is being paid today. Here’s the lowdown appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.

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