Are you looking for a delicious S&P/ASX 200 Index (ASX: XJO) dividend share that looks to be trading at a bargain?
Then you may want to run your slide rule over Woodside Energy Group Ltd (ASX: WDS).
Shares in the oil and gas company have come under pressure on several fronts. Those include a steep fall in the oil price and a few multi-billion dollar acquisitions that had some analysts scratching their heads.
Indeed, at yesterday's closing price of $25.12 a share, this delicious ASX 200 dividend share is down 34.12% in 12 months, trading at what I believe could be a very attractive entry point for life-long income.
We'll look at that passive income potential below. But first…
Why Woodside shares may be near the bottom
After the past year's sell-down, I think Woodside shares are likely trading near a low point.
The ASX 200 dividend share closed down 5.14% yesterday after the company announced it had entered into a binding agreement to acquire OCI Clean Ammonia and the company's lower carbon ammonia project, located in the US state of Texas. The price tag was reported at around US$2.35 billion (AU$3.61 billion).
While that's a pretty penny, CEO Meg O'Neill highlighted the long-term potential benefits of the acquisition.
"Global ammonia demand is forecast to double by 2050, with lower carbon ammonia making up nearly two-thirds of total demand," O'Neill said.
As for the oil price impact on this high-yielding ASX 200 dividend share, I also believe we're at or near the low. Brent crude is currently trading for around US$77 per barrel, down from US$97 per barrel on 28 September.
Indeed, Goldman Sachs commodities' strategist Daan Struyven yesterday reiterated the broker's forecast of a US$75 floor for Brent crude, with Goldman retaining its forecast price range of $US75 to US$90 per barrel.
According to Struyven (quoted by The Australian Financial Review):
While we flagged in July upside risks to oil price volatility and downside risks to our oil price call, we believe that the sell-off in recent days is largely driven by macro recession fears and sharp positioning unwinds across FX, bond, equity, and energy markets, which should abate under our economists' no recession base case.
A delicious, beaten-down ASX 200 dividend share
Getting back to that passive income, eligible shareholders will have received Woodside's fully franked interim dividend of $1.244 a share on 28 September.
The ASX 200 dividend share paid out the fully franked final dividend of 91.7 cents a share on 4 April.
That comes out to a full-year dividend payout of $2.161 a share.
At yesterday's closing price, this equates to a fully franked trailing yield of 8.6%.
As for the upcoming Woodside dividend, the ASX 200 energy company reports its next batch of earnings results on 27 August.
