The Woodside Energy Group Ltd (ASX: WDS) share price is up 1.91% to $38.71, as the broader market enjoys a strong run following softer monthly inflation data from the United States.
Woodside has had an absolutely cracking year in 2022. The Woodside share price is currently up 71% in the year to date. This is largely due to energy supply constraints brought about by Russia's invasion of Ukraine.
Just two years ago, Woodside shares were in a hole.
COVID-19 lockdowns meant global industrial activity and the use of vehicles declined significantly, reducing the need for fuel.
Woodside was a COVID-19 loser for sure. The Woodside share price dropped to about $16 in the market crash in March 2020. It then spent much of the following two years below $25 per share.
So, for those Woodside investors sitting on very healthy capital gains right now, is it time to sell?
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Fundie says Woodside share price is a sell
Benjamin Goodwin of Merlon Capital thinks it's time to cash in on the Woodside share price today.
Goodwin writes on Livewire that his fund has taken profits on a number of ASX energy stocks. These include Woodside, Ampol Ltd (ASX: ALD), Viva Energy Group Ltd (ASX: VEA), and Santos Ltd (ASX: STO).
The fund has also sold down the ASX coal shares of New Hope Corporation Limited (ASX: NHC) and Whitehaven Coal Ltd (ASX: WHC).
Goodwin said:
Having previously identified and invested in the opportunities made available through prolonged underinvestment in traditional energy fuels and invested on the basis of the estimated risk/return trade-offs, we have been steadily reducing exposures as companies in this space have outperformed.
The case to hold… or even buy?
Romano Sala Tenna, co-founder of Katana Asset Management, told my Fool colleague Bernd in a recent interview that he's bullish on Woodside for dividend income purposes.
Right now, based on today's Woodside share price, the oil and gas giant is offering a fully franked trailing dividend yield of 11.3%.
Back in September, Woodside declared its highest interim dividend since 2014 at 109 US cents per share.
This was due to a 400% profit surge, in part due to the merger with the petroleum business of BHP Group Ltd (ASX: BHP).
My colleague, Bruce Jackson, points out that Woodside is trading on trailing single-digit multiples.
For the record, the ASX website has Woodside sitting on a price-to-earnings (P/E) ratio of 8.1.
Bruce reckons Woodside has significant future falls in the oil price already reflected in its share price.
