Looking to bag the boosted Santos dividend? Here's what you need to know

Santos reported on its half-year results this morning, pleasing passive income investors with an increased dividend payout.

| More on:
ASX oil share price buy represented by cash notes spilling out of oil pipe Suez ASX energy shares

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Looking to bag the boosted Santos Ltd (ASX: STO) dividend?

The S&P/ASX 200 Index (ASX: XJO) oil and gas stock reported on its half year results this morning.

Passive income investors, here's what you need to know.

What's happening with the Santos dividend?

Many of the financial metrics in H1 2023 were down from H1 2022, with a significant impact from a 26% year on year decline in the company's average realised oil price. Still, Santos had a highly profitable year.

First-half revenue came in at US$2.97 billion, down 21% year on year. And while net profit was also down 32% from H1 2022, Santos still reported net profit of US$790 million for the six months ending 30 June.

And free cash flow from operations, while also down 34% year on year, was still a robust US$1.13 billion.

That strong free cash flow resulted in the board declaring an interim Santos dividend of 8.7 US cents per share, unfranked. That's up 14% from last year's interim dividend. And it equates to a total return to shareholders of US$283 million.

Commenting on the company's strategy, Santos CEO Kevin Gallagher said, "Our goal is to strike the right balance between disciplined and phased major project spend, returns to shareholders, and investment in new energy solutions to meet customer demand."

Now, you may have noticed that the dividend is quoted in US currency. Santos will use the exchange rate on 1 September to determine the payout in Aussie dollars.

At the current exchange rate of 64.39 cents to the US dollar, the Santos dividend works out to 13.5 Aussie cents per share. At the current Santos share price of $7.71 that equates to a pending yield of 1.8% from the interim dividend alone.

If you're looking to grab that dividend, you'll want to own Santos shares at market close on Friday, 25 August. The stock trades ex-dividend on Monday, 28 August.

Eligible investors can expect that passive income to land in their bank account on 28 September.

The company's Dividend Reinvestment Plan (DRP) is not in effect for this payout.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. 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.

More on Dividend Investing

Woman and man calculating a dividend yield.
Dividend Investing

Is WAM Capital stock a buy for its whopping 11% dividend?

Be careful what you wish for in an 11% yield...

Read more »

Person with a handful of Australian dollar notes, symbolising dividends.
Dividend Investing

Which ASX 200 healthcare share will pay the best dividend yield in FY24?

Healthcare stocks are a traditional defensive play in challenging economic times.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

3 ASX dividend shares to buy with 5%+ yields

Analysts are tipping these buy-rated shares to offer big yields.

Read more »

Happy man in a holiday shirt holding out Australian dollar notes, symbolising dividends.
Dividend Investing

3 ASX dividend stocks I own to pay for my retirement

I love the cash these shares are sending to me every year.

Read more »

Young girl with green hair and big bow dancing with joy
Dividend Investing

This high-yield ASX share could pay a dividend yield of almost 14% in FY25!

This stock could continue to be a fountain of cash.

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

Analysts say these top ASX 200 dividend shares are buys

Income investors might want to check out these buy-rated shares.

Read more »

Three young girls on a farm hold bunches of carrots triumphantly above their heads.
Dividend Investing

Income investors: 3 ASX dividend shares that could rally in 2024

Don't just grab the stocks with the highest yields. Check out these picks that have potential to bring back capital…

Read more »

Beautiful young couple enjoying in shopping, symbolising passive income.
Dividend Investing

An ASX dividend giant I'd buy over BHP stock

The dividends from this business have grown enormously.

Read more »