Woodside Energy Group Ltd (ASX: WDS) shares can be a great source of passive income in the year ahead.

The company is seeing higher earnings due to stronger energy prices, which can lead to larger distributions.

Woodside has operations across the world, with projects in Australia, Africa and North America.

Let’s take a look at what the business is projected to deliver in passive income in the coming year.

2027 financial year projection

The company’s payout depends heavily on energy prices, which is why it has fluctuated so much over the years. Production costs usually don’t change much in the short term, so a rise in revenue can largely boost net profit too.

But the opposite can also be true. When energy prices and revenue decline, net profit can drop significantly, likely reducing passive income for owners of Woodside shares, too.

The FY26 half-year result showed what the company is capable of when energy prices rise.

Operating revenue grew 13% to US$7.4 billion, underlying net profit after tax (NPAT) rose 7% to US$1.3 billion and free cash flow soared 159% to US$352 million. The financial improvement was helped by a 20% rise in the average realised price to US$74 per barrel of oil equivalent (BOE).

As the company noted, total production volume fell only 13% to 86.5 million barrels of oil equivalent (MMboe), while production costs rose 12% to US$749 million. I think those figures explain why the financials didn’t grow even more during the first six months to June 2026.

There was an improvement in net profit, which allowed the company to hike its interim dividend per share by 8% to US 57 cents in its HY26 result. But I’m going to look at the 2027 financial year prediction by analysts.

Based on the projection on CMC Invest, Woodside could pay an annual dividend per share of $1.94, which translates into a potential grossed-up dividend yield of 8.7%, including franking credits, at the time of writing.

What passive income would a $15,000 investment in Woodside shares create?

If an investor wanted to put $15,000 into Woodside shares, they would be able to buy 470 Woodside shares, at the time of writing.

With that investment and the projection for FY27, an investor could receive $911.8 of dividend cash and $1,302.6 of overall dividend income, including the franking credits.

Should investors actually do that? According to CMC Invest, analysts have issued 10 ratings on the business in the last three months: two buys, seven holds, and one sell.

The average price target of those 10 analyst ratings was $32.11, implying little positive movement (at the time of writing) over the next year. Therefore, it appears fully valued and it could be better to look at other ASX share opportunities today.

The post If I invest $15,000 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.

BHP vs Codan shares: Which strong performer is the better buy today?

When two ASX 200 shares have both delivered impressive returns lately, it can be tough to choose between them. BHP Group Ltd (ASX: BHP) and Codan Ltd (ASX: CDA) are both strong performers in 2026, but offer totally different business profiles for Aussie investors. Today, I’m comparing BHP vs Codan shares to see which stands out better right now, looking at their fundamentals, dividend potential, momentum, and more.

The case for BHP

BHP Group is a global resources titan, mining everything from iron ore to copper and nickel. It’s one of the largest companies on the ASX. BHP is also famous for its fully franked dividends and its ability to ride the boom-bust cycles of global commodities. According to its most recent public description, the business consolidated its listing recently and operates worldwide.

BHP’s standout fundamentals:

• Market cap: $306.37 billion – BHP dwarfs most other ASX names, highlighting its defensive size and industry standing.
• Dividend yield: 3.98%, fully franked – reliable income, with 100% franking making it especially attractive for many Aussie investors.
• YTD return: 39.0% – a big jump for a miner of this size, showing investors’ confidence in the current commodity cycle.

BHP’s dividend track record is impressive, regularly rewarding shareholders with fully franked income and the occasional special dividend. However, the miner’s profits and share price can swing sharply depending on iron ore and metals prices.

The case for Codan

Codan is an Australian electronics designer and manufacturer, specialising in communications, metal detection, and mining technology. Its products find customers across government, military, and commercial sectors globally, with particular strength in North America. According to its company profile, Codan has a diversified international footprint with manufacturing in Australia and Malaysia, and support operations spanning several countries.

Codan’s most interesting fundamentals:

• Market cap: $12.00 billion – that’s small compared to BHP, but not for a tech-focused midcap.
• P/E ratio: 67.18 – suggests investors are paying up for perceived growth, but this is high even for tech stocks.
• YTD return: 128.3% – a stunning run, more than tripling BHP’s YTD gain in 2026.

Codan pays fully franked dividends, though at a much lower running yield than BHP (0.75%). Its growth profile and global market presence stand out, but income seekers may shrug at the low dividend yield.

Valuation comparison

BHP and Codan sit in different sectors, so direct valuation comparisons need context. That said, there are some stark differences:

Metric	BHP	Codan
Market Cap	$306.37 billion	$12.00 billion
P/E Ratio	22.09	67.18
Dividend Yield	3.98% (100% franked)	0.75% (100% franked)
Earnings Per Share	1.932	0.959
Dividend Per Share	2.42	0.49

Note: Codan’s P/E ratio is unusually high – even for a growth stock – while BHP’s valuation is more moderate for a major miner. Dividend hunters will see a clear win for BHP on current yield.

Recent share price momentum

Comparing recent share price performance up to 30 September 2026:

• BHP Group: closed at $60.82, up 39.0% YTD. The last week saw BHP stay fairly steady, with mild day-to-day moves, and no big volatility spikes.
• Codan: closed at $65.83, up a massive 128.3% YTD. Notably, Codan gained 23.9% in a single day (29 September), showing some serious momentum – but with that often comes higher risk and price swings.

Which is the better buy?

Looking at BHP vs Codan shares, I’m genuinely impressed by both. BHP brings scale, reliability, fully franked income and a more accessible P/E ratio in a highly cyclical sector. Codan, meanwhile, is a clear market darling among growth hunters after more than doubling in 2026 and boasting a diversified, global high-tech business.

But, at current prices, my pick would be BHP. Here’s why: Codan’s massive P/E and wafer-thin dividend make me nervous about how much good news is already factored in. While Codan could continue to outperform if it delivers on growth, that sort of valuation demands everything (and more) goes right.

BHP isn’t cheap compared to its own history, but pays close to four percent yield, fully franked, on a much larger and more resilient resource base. For my money, the combo of income, scale, and a reasonable P/E makes BHP the more balanced opportunity between these two strong performers today.

The post BHP vs Codan: Which ASX 200 share is the stronger buy today? appeared first on The Motley Fool Australia.

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• Which were the best-performing ASX 200 shares in September?
• Codan vs Xero: Which ASX tech stock is the better buy in October?

Motley Fool contributor Laura Stewart 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Wesfarmers vs Woolworths shares: Which dividend stock is better today?

When it comes to blue-chip dividend shares on the ASX, Wesfarmers Ltd (ASX: WES) and Woolworths Group Ltd (ASX: WOW) are two names I hear mentioned time and again. Both are household names, both deliver franked dividends, and both have substantial histories as Australian retail powerhouses. If you’re trying to decide between the two, you’re not alone—so let’s take a closer look at where their shares stand today.

The case for Wesfarmers

Wesfarmers is one of Australia’s largest diversified conglomerates. With origins back in 1914 as a Western Australian farmers’ cooperative, today it’s home to familiar brands like Bunnings, Kmart, Officeworks, Priceline, and a growing health and wellbeing business after buying Australian Pharmaceutical Industries. This breadth means Wesfarmers is exposed to multiple sectors—from consumer retail to chemicals, energy and fertilisers—making it less reliant on any one division.

A few points leap out in the fundamentals:

• Market Cap: $86.93 billion, making it one of the country’s biggest listed companies
• Dividend Yield: 2.99%, fully franked at 100%
• P/E Ratio: 29.34

Wesfarmers’ dividend has been not only consistent but also fully franked, and the last payout (final and interim for FY26) totals $2.22 per share. According to its most recent public description, Wesfarmers is continuing to invest and broaden its portfolio.

The case for Woolworths

Woolworths Group is the dominant supermarket retailer across Australia and New Zealand. If you’ve set foot in a Woolies or Big W store lately, you’ve experienced just a slice of its immense retail presence. With its core focus on groceries and everyday needs, Woolworths is often seen as a “defensive” stock, aiming for stability even during tougher economic times. It divested its drinks and hospitality business in 2021, sharpening its focus on supermarkets and general merchandise.

Key fundamentals include:

• Market Cap: $47.89 billion
• Dividend Yield: 2.49%, also fully franked at 100%
• P/E Ratio: 42.04

Woolworths’ most recent declared dividends (final and interim for FY26) total $0.97 per share. In its company profile, Woolworths highlights its large store network and massive workforce supporting steady cashflows from groceries and essentials.

Valuation comparison

Let’s put some of the main valuation and return metrics side by side:

Metric	Wesfarmers	Woolworths
Market Cap	$86.93b	$47.89b
P/E Ratio	29.34	42.04
Dividend Yield	2.99%	2.49%
Dividend per Share	$2.22	$0.97
Franking	100%	100%
EPS	2.534	0.925
YTD Return	-5.6%	35.7%

It’s notable that Wesfarmers trades on a much lower P/E ratio than Woolworths—29.34 compared to 42.04—even though both are in sectors that typically attract market premiums. Wesfarmers’ full-year dividend is also higher in absolute terms and yield, with both companies offering the stability of full franking.

Note: While both companies’ P/E and EPS are presented side by side, keep in mind sector differences—Wesfarmers’ more diversified earnings base vs Woolworths’ retail focus—may affect how much weight I’d give to a headline multiple.

Recent share price performance

Comparing recent share price activity up to 30 September 2026:

• Wesfarmers closed at $76.61, up 3.0% on the day, but has returned -5.6% YTD
• Woolworths finished at $39.20, up 0.8% on the day, with a very strong YTD return of 35.7%

That’s a huge divergence over 2026 so far—Woolworths has enjoyed a stellar run, while Wesfarmers has pulled back.

Which is the better buy?

Balancing strong dividend credentials with business quality and recent momentum, my pick today would be Wesfarmers. Here’s why: The absolute dividend yield is higher, the payout is fully franked, and Wesfarmers’ diversified portfolio is built to weather different macro conditions—not just those that support grocers. While Woolworths has shot the lights out with a 35.7% return this year, its P/E ratio is substantially higher, suggesting markets may already be pricing in a lot of optimism. I see more sustainable value and income potential in Wesfarmers at these levels, especially for those who care about fully franked dividends and a lower entry multiple. For income investors, Wesfarmers ticks more boxes for me. Woolworths is certainly quality, but at 42 times earnings, I’d rather wait for a better entry point there.

The post Wesfarmers vs Woolworths: Which ASX dividend share looks better this month? appeared first on The Motley Fool Australia.

More reading

• How to build a $52,000 passive income with ASX shares
• In a tough retail environment, what’s the outlook for Wesfarmers shares?
• AGL Energy vs Wesfarmers: Which share delivers better passive income?
• How much could the Wesfarmers share price rise in the next year?
• How many Wesfarmers shares do I need to buy for $8,000 of passive income?

Motley Fool contributor Laura Stewart 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 Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.