Woodside Energy Group Ltd (ASX: WDS) shares not only smashed the benchmark index over the past 12 months, but they've also delivered some outsized passive income.
The S&P/ASX 200 Index (ASX: XJO) oil and gas stock has gained 10.6% over the full year. That compares to a 0.3% loss posted by the ASX 200.
So what about that handy passive income?
Fuelled by surging crude oil prices in the first half of 2022, Woodside paid out both a record interim dividend and a record final dividend, both fully franked.
The interim dividend of $1.60 per share was paid out on 6 October.
Woodside shares delivered the final dividend of $2.15 per share into investors' bank accounts on 5 April.
That works out to a full-year dividend payout of $3.75 per share.
At the current share price of $33.88, this equates to a trailing yield of 11.1%. Or $111 in annual passive income from a $1,000 investment.
Now you won't hear many investors complaining about that kind of yield. Especially not with the potential franking tax benefits.
Yet, some ASX 200 investors will be banking a significantly higher yield from their Woodside shares than that.
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Buying the dip
It's not easy to take the plunge and buy shares in a company that's seeing its share price slide.
And it's certainly not always a good idea.
But sometimes, whether via sound investment advice or simply good luck, buying the dip can deliver some outsized share price gains. And it can also boost the passive income you receive from the stock.
That's particularly with cyclical stocks, like resource shares, that tend to rise or fall in line with the commodities they produce.
Mid-May 2022 offered up one such opportunity with Woodside shares.
On 20 May, the company's share price had dropped 10% over two weeks, closing the day at $28.77 per share.
If you'd bought shares near market close on 20 May, you'd be earning a fully franked yield of 13.0%.
Or $130 in passive income from your $1,000 investment, and in only 11 months.
Topping that off, Woodside shares have gained 17.8% over that time, adding another $178 to your initial investment.
How have Woodside shares been performing?
As you can see in the below chart, Woodside shares are up 11% over the past full year. And that doesn't include the two record dividend payments.
