Top research analysts tip Woodside share price to hit $39.85 flags 5.6% dividend yield

Woodside Petroleum Limited (ASX: WPL): buy, hold, sell?

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Many investors will be upping their search for fully franked dividend shares after the RBA slashed cash rates to just 1% today.

One option could be look to blue-chip oil and LNG giant Woodside Petroleum Limited (ASX: WPL) shares if the analysts at Goldman Sachs are on the money.

Back in April 2019 the analysts took a look at Woodside's operational update for the quarter ending March 31 2019 and came away with a positive view.

"Woodside continues to make progress on all fronts, with negotiations progressing well on Browse and Scarborough projects, while FID on Senegal is now targeted for mid-2019. We continue to sit toward the top end of the unchanged 2019 production guidance of 88-94mmboe with our positive view on Woodside underpinned by a 5% production CAGR to 2021, de-risking of the Browse and Scarborough projects towards FID in 2020 and 2021 respectively," commented the analysts.

The analysts also note that Woodside shares offer investors an impressive dividend yield.

On a trailing 12 month basis the LNG giant has paid $1.998 per share in dividends to place it on a 5.4% yield plus full franking credits based on a share price of $36.74 today. If this dividend turned out to be sustainable or grew it could be a good bet for income seekers. 

However, as Goldman's also notes fundamental uncertainty over the future direction of the oil price is "high" due to the complex geopolitical picture around large producers such as Iran, Venezuela and the U.S. among others. Woodside is leveraged to the oil price and any downturn could drag profits, dividends and the share price down with it. 

Goldman's has a 12 month price target of $36.74 on the shares.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Three businesspeople leap high with the CBD in the background.
Share Market News

Boom! ASX 200 blasts to new record highs

ASX 200 investors just sent the benchmark index into uncharted territory.

Read more »