How does the Woodside Petroleum (ASX:WPL) dividend compare to the energy sector?

Here’s some good news for Woodside shareholders.

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The Woodside Petroleum Limited (ASX: WPL) share price isn’t having a good run lately, but investors will likely still be excited about the company’s dividend.

The oil and gas producer historically pays a dividend in March and September. It generally announces its final dividend in August and its interim dividend in February.

The Woodside share price has fallen 4% over the course of 2021. Shares in the company are currently trading for $22.14 a piece.

But how does the Woodside dividend compare to those of its peers on the S&P/ASX 200 Energy Index (ASX: XEJ)? Let’s take a look.

How the Woodside dividend stacks up

The last 2 dividends the oil and gas producer has handed out were significantly smaller than those prior.

Woodside didn’t have a great 2020 calendar. Unfortunately, its poor performance has been reflected in its dividends. Readers can find Woodside’s 2020 results here.

In fact, its final dividend of 2020 was the smallest the company has ever given its shareholders. It was just 15.29 Australian cents per share.

The previous dividend payout, given to shareholders in March 2020, was 36.24 Australian cents.

Meaning the company handed around 51.5 cents per share from its 2020 calendar year profits back to its shareholders.

That leaves Woodside with a dividend yield of 2.35%.

Additionally, All dividends Woodside has even given out have been fully franked. That means some investors may be using the dividends to reduce the amount of tax they pay.

When compared to the ASX 200 energy sector, the current Woodside dividend yield is pretty good.

Only two companies have recorded better dividend yields.

Those are Worley Ltd and Origin Energy Ltd. They parade respective dividend yields of 4.48% and 5.47%.

However, neither Worley nor Origin offer franked dividends. Meaning, for many investors, the Woodside dividend may be seen as the best in class.

Should you invest $1,000 in Woodside right now?

Before you consider Woodside, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Woodside wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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