Woodside Energy Group Ltd (ASX: WDS) shares are one of the most popular ASX dividend options because of the company’s strength, dividend yield and potential future passive income payouts.

The ASX energy share usually has a good dividend yield, superior to that of peers like Santos Ltd (ASX: STO) and Beach Energy Ltd (ASX: BPT).

Woodside’s dividend has jumped around over the last decade, with significant shifts in resource prices over time.

In the company’s FY25 annual result (reported in February), it said that operating revenue declined 1%, underlying net profit declined 8%, statutory net profit dropped 24% and operating cash flow rose 23%. This led to the full-year dividend declining by 8%.

In this article, we’re going to look at the potential annual FY27 dividend, which will be paid partly in 2027 and partly in 2028 because its FY27 annual result and final dividend won’t be announced until February 2028.

FY 2027 dividend projection for owners of Woodside shares

According to the projection on Commsec, the ASX energy share is estimated to pay an annual dividend per share of A$2.918 for the 2027 financial year.

At the time of writing, this forecast translates into a dividend yield of 10.1% excluding franking credits and 14.5% including franking credits.

If someone were to invest $8,000 in Woodside, they would be able to buy 278 Woodside shares (with a little bit of money left over).

With those 278 Woodside shares, investors could receive $811.20 of cash and perhaps $347.66 of franking credits.

Is this a good time to invest in the ASX energy share for passive income?

According to CMC Invest, there have been nine recent analyst rating calls on the business in the last three months.

Of those nine ratings, two were a buy, five were a hold and two were a sell. So, on average, the investment professionals are neutral on the company’s valuation right now (at the time of writing).

The average price target of those nine analyst ratings is $31.39. That means, collectively, those analysts are predicting the Woodside share price will (at the time of writing) rise by around 10% over the next year.

In the past year, the Woodside share price has been close to $22 and above $35. So, analysts are expecting the company to be closer to its 52-week high than its 52-week low, following the Middle East events. The dividend could play an important part in whether the Woodside shares deliver a market-beating return in the next 12 months or not.

But, energy prices can be volatile, so other ASX shares may prefer investments that are more stable and are more predictable.

The post If I invest $8,000 in Woodside shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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.

When it comes to building long-term wealth for my kids, my focus is on high-quality ASX shares that can compound over decades.

After all, my kids are still little. So there’s no point in me chasing the next big booming growth stock when consistent growth is much more valuable for my kids’ futures

Here are two ASX 200 shares I’d buy and hold for my kids.

iShares S&P 500 ETF (ASX: IVV)

I think one of the best ASX shares to buy for kids is a broad-market ETF. Rather than picking individual stocks, an ETF gives its shareholders a stake in multiple companies at once.

IVV is a great example. The ETF provides its shareholders with exposure to around 500 of the largest US-listed companies, including well-known global brands, businesses with large customer bases, and those with strong balance sheets. 

The ETF holds major names that even your kids would be aware of. Such as Nvidia, Apple, Amazon, Tesla, Netflix and many others.

The benefit of investing in an ETF rather than a single stock is that if one company suffers a share price decline, it would have a limited impact on the ETF as a whole. 

And this is ideal for investors looking to buy ASX shares for their kids to hold for the long term. 

IVV is generally a low-risk investment versus trying to pick an individual winner. Instead of betting on a single company, investors are effectively buying their kids a slice of all the largest US businesses at once.

IVV pays passive income, too. It generally pays its shareholders four dividends per year. Most recently, it paid shareholders 13.95 cents per share in April, which translates to a trailing dividend yield of roughly 1% at the time of writing.

Telstra Group Ltd (ASX: TLS)

If I were to buy a single stock for my kids, it would be a classic ASX defensive share, such as Telstra.

The telecommunications company is dominant in Australia. It operates one of the country’s largest mobile networks and is a major fixed-line internet provider. 

Mobile phone and internet use are already considered necessities, and I think both services will only continue to grow over the next few decades.

This stable and growing demand means Telstra is also well-positioned to benefit from recurring revenue and earnings. And this will be the case regardless of the stage of the economic cycle we are in. 

This type of stock is also perfect for investors who want to hedge against potential volatility elsewhere in their kids’ portfolio.

And if that isn’t enough, Telstra’s defensive nature means it can also pay shareholders a consistent passive income, too.

The ASX 200 telco most recently paid shareholders a dividend of 10.5 cents per share in March, 90.48% franked. Analysts forecast Telstra to pay a total dividend of 21 cents in FY26. This translates to a forward dividend yield of around 4.1% excluding franking credits, at the time of writing.

Washington H. Soul Pattinson and Company Ltd (ASX: SOL)

If I were to focus on long-term dividend income. Soul Patts is another ASX share I’d consider buying for my kids. 

Soul Patts is an Australian diversified investment house. It’s often compared to Warren Buffett’s Berkshire Hathaway because it invests in a broad portfolio of assets ranging from ASX-listed companies, to private credit, to real estate, and others.

Not only is it widely regarded as Australian dividend royalty, but it’s also one of the few ASX shares that have continually raised its dividend payments over the past 28 years.

Soul Patts historically pays its fully-franked dividends twice per year in May and a final dividend in December. It occasionally also pays shareholders an additional special dividend.

For the first half of FY26, Soul Patts paid a fully-franked interim dividend of 48 cents per share. This was a 9.1% increase on the prior corresponding period.  At the time of writing, the ASX shares have a grossed-up dividend yield of around 2.4%, including franking credits.

The post 3 ASX shares I’d buy and hold for my kids appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX dividend shares are some of my favourite investments in my portfolio because they provide a mix of passive income and long-term growth.

I own a mixture of ASX dividend shares, ASX growth shares and exchange-traded funds (ETFs) for a variety of investment purposes.

One of the businesses that I’ve made among my biggest positions is L1 Long Short Fund Ltd (ASX: LSF).

For me, there are three key reasons that I really like the listed investment company (LIC).

Good and growing passive income

The LIC has an impressive track record of delivering consistent dividend growth.

It has increased its annual payout each year since it started paying in FY21. The business recently changed to paying a quarterly dividend and it has been increasing its dividend every quarter.

If it continues growing its quarterly dividend at a similar pace, the next four dividends would come to a grossed-up dividend yield of 4.9%, including franking credits, at the time of writing.

I think that’s a solid starting point, with plenty of room for further dividend growth as a result of strong investment performance. I expect the November 2026 quarterly dividend to be 11.4% larger than the November 2025 quarterly dividend.

Strong investment performance

A LIC funds its dividends from the investment performance of its portfolio. With the ASX dividend share’s excellent long-term performance, it can continue paying pleasing passive income and funding growing payouts.

The performance has been so good that it has been able to deliver excellent capital growth too. In the past eight years, the L1 Long Short Fund share price has risen close to 130%.

The LIC targets a mixture of both ASX shares and international shares, through both normal investing and short-selling. Through that strategy, it’s able to utilise both good value and expensive shares, locally and globally, to its advantage.

In the past five years, the L1 Long Short Fund portfolio has returned an average of 17% (net) per year. That’s a great return, in my opinion! Of course, past performance is not a guarantee of future performance.

Diversification

One of the best reasons I like this business is how it generates returns. It hasn’t relied on technology businesses due to how it invests – it’s more likely to short a tech stock than invest in it for the long-term.

Instead, it looks at opportunities in other areas such as gold shares, copper shares, industrials and telecommunications. In other words, the ‘real’ economy.

You can make good returns in almost any business, including cyclical ones, if bought at the right price. So, by investing in this ASX dividend share, I’m getting exposure to companies and sectors I don’t in other parts of my portfolio.  

But, this isn’t the only ASX dividend share I want to buy for my portfolio.

The post Why I made this top ASX dividend share one of my biggest investments appeared first on The Motley Fool Australia.

More reading

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• How to invest $12,500 for passive income in superannuation?
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• 2 great ASX dividend shares I plan to buy in June
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Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund. 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.