Woodside Energy Group Ltd (ASX: WDS) shares are having a tough day on Wednesday.
In afternoon trade, the energy giant's shares are down 2.5% to $35.34.
While this is disappointing, it is potentially good news for income investors.
That's because every time to Woodside share price pulls back, the yield on offer with its shares gets larger.
And large it certainly is!
The Woodside dividend
According to a note out of Citi, its analysts are expecting the company to pay a $2.99 per share fully franked dividend in FY 2023.
Based on the current Woodside share price, this implies a potential yield of approximately 8.5% for investors. This is significantly better than what you'll find with savings accounts, term deposits, and the market average dividend yield.
If Citi is on the money with its forecast, it also means that to generate $20,000 in passive income from its shares, you would need to make an investment of a little under $250,000.
This is of course a large number and few investors have that available to invest. But there's nothing to stop you from making it a long term target.
Although past performance is not a guarantee of future returns, the share market has historically provided investors with a return averaging 10% per annum.
If the market were to do the same again in the future and you were able to match the market return, you could grow your portfolio from zero to $250,000 by investing $10,000 each year for a touch over 12 years.
At that point, you would have grown your portfolio to the desired amount and then you can switch your focus to income and sit back and watch your passive income come rolling in.
