A popular option for income investors on the Australian share market is Woodside Energy Group Ltd (ASX: WDS).
It isn't hard to see why this is the case.
Over the last decade, the energy giant has shared a large portion of its earnings with shareholders in the form of dividends.
This continued in FY 2022, with Woodside paying out a total of US$4,804 million to its lucky shareholders.
And with the recent merger with the petroleum operations of BHP Group Ltd (ASX: BHP) increasing the scale of its operations materially and its earnings potential accordingly, Woodside appears well-placed to keep rewarding its shareholders handsomely long into the future.
So, what would happen if you were to invest $10,000 into Woodside shares now? Would you receive a nice passive income boost?
Investing $10,000 into Woodside shares
With Woodside shares taking a sharp tumble at the end of the week to $33.74, investors would now be able to pick up approximately 296 units with a $10,000 investment.
With that in mind, let's see how much income they could generate.
According to a note out of Citi, its analysts are forecasting fully franked dividends of $1.82 per share from Woodside in FY 2023.
Based on its current share price, this implies a 5.4% dividend yield and will result in a passive income of approximately $540.
The good news is that Citi is expecting the energy producer to be in a position to then increase its dividend to $1.87 per share in FY 2024 and then $2.01 per share in FY 2025.
This will mean further passive income of $554 and $595, respectively, from Woodside shares in the years that follow.
That's a total of just under $1,700 of passive income over the next three years from a $10,000 investment.
