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

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

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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.

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