Woodside dividend tripled: Here's everything you need to know

How does Woodside's latest dividend compare to previous years?

| More on:
A man throws his arms up in happy celebration as a shower of money rains down on him.

Image source: Getty Images

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

Key points

  • The Woodside share price is in the green and hit a new two-year high in early trading
  • The company declared a huge interim dividend of 109 US cents per share 
  • The dividend is due to be paid on 6 October 

Woodside Energy Group Ltd (ASX: WDS) has declared a massive dividend in today's half-year results.

Woodside shares are currently up 1.7% to trade at $35.95. Earlier, the share price hit a new two-year high of $36.68. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.5% so far today.

So how does this latest dividend compare to previous years, and when will it be paid?

Woodside dividend the highest since 2014

Woodside announced today it will pay a fully franked dividend of 109 US cents per share for the first half of 2022.

This is more than triple the dividend paid to shareholders for the first half of 2021. Last year, Woodside shareholders received an interim dividend of 30 US cents per share.

Today's dividend reflects the strong operational performance, higher realised prices, and merger with the petroleum business of BHP Group Ltd (ASX: BHP), the company said.

Woodside reported a 414% surge in underlying net profit after tax (NPAT) to US$1.82 billion. The oil and gas company produced 54.9 million barrels of oil equivalent (boe), 19% higher than the prior corresponding half.

Today's declared dividend is at the top end of Woodside's targeted payout ratio of between 50% and 80%.

The dividend is valued at US$2.1 billion. Breaking this down, US$1.5 billion, or 76 US cents per share, reflects 80% of Woodside's underlying NPAT. The other 33 US cents per share, totalling $600 million, represents 80% of the BHP merger completion payment.

In 2020, Woodside paid a 26 US cents per share dividend in the first half, while in 2019 this figure was 36 US cents per share. Today's interim dividend is the highest interim payment declared since 2014.

Woodside will pay the interim dividend on 6 October. Woodside shares will trade ex-dividend on 8 September.

Share price snapshot

The Woodside share price has soared 79% in the past 12 months and 59% in the year to date.

For perspective, the ASX 200 has shed 7.7% in the past year.

Woodside has a market capitalisation of $67.12 billion based on the current share price.

Motley Fool contributor Monica O'Shea has no positions in Woodside Energy Group Ltd. 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.

More on Dividend Investing

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Dividend Investing

2 market-leading ASX dividend stocks to buy in April

Analysts have put buy ratings on these market-leaders.

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 »

Man holding Australian dollar notes, symbolising dividends.
ETFs

Want the latest dividend from the Vanguard Australia Shares ETF (VAS)? Here's what you have to do

If you want to bag the latest VAS dividend, here's what you need to do.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Dividend Investing

Investing for passive income? Keep any eye out for that boosted Telstra dividend today!

If you own Telstra shares, keep an eye out for that juicy dividend payout today.

Read more »

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Dividend Investing

Invest $12,000 in Woodside stock and get $5,700 in passive income

Reliable dividend shares are everywhere on the ASX. Here's how you could use that to your advantage.

Read more »

Australian dollar notes in businessman pocket suit, symbolising ex dividend day.
Dividend Investing

3 ASX 300 dividend shares to buy in April

These shares have been named as buys by brokers and tipped to offer very attractive yields.

Read more »

A couple of friends at a rooftop party enjoying some hot and tasty Domino's pizza
Dividend Investing

Own Domino's shares? Today is pay day!

Eligible Domino’s shareholders can expect some welcome passive income today.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Opinions

3 top income-focused ASX shares to buy before April

I'd bolster my income by buying these dividend-payers before the next month rolls around.

Read more »