The Woodside Petroleum Limited (ASX: WPL) dividend has surged higher following the energy giant's half-year results release.
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Why has the the Woodside dividend jumped 14%?
Woodside shares slid lower following the company's results for the half-year ended 30 June 2021 (1H 2021).
That's despite Woodside posting a $317 million net profit after tax compared to a $4 billion loss in 1H 2020. Operating revenue jumped 31.3% to $2.5 billion with free cash flow of $311 million.
But investors had their eyes on the Woodside dividend. The energy company reported a US 30 cents per share distribution on Wednesday.
That translates to a 41 cents per share distribution in Australian dollar terms, up 14% on the 36.3 cents per share payment in September 2020.
Based on the most recent Woodside dividend, and including the US 12 (AUD 15.3) cents per share final dividend from March, the company's shares closed on Wednesday with a 2.77% dividend yield.
What else is keeping Woodside in the news?
The most recent distribution came as Woodside confirmed a mega merge with the energy division of BHP Group Ltd (ASX: BHP).
The proposed all-stock transaction would create a globally competitive oil and gas company and an enormous ASX-listed entity. If the transaction is approved by shareholders and regulators, Woodside will issue shares to BHP shareholders and create a new joint venture.
The focus is on creating a high margin oil portfolio alongside long-life liquid natural gas (LNG) assets. These merger talks, however, haven't dampened the board's appetite for a Woodside dividend.
Foolish takeaway
The US 30 cents per share payment is good news for income-seeking shareholders right now. It also comes at a time of change and growth for the Aussie oil and gas production giant.
The Woodside share price slid 2.1% lower on Wednesday and has now slid 12.1% lower so far in 2021.
