There's a high-yielding S&P/ASX 200 Index (ASX: XJO) dividend stock that I think is a top choice for passive income investors.
That's despite a sizeable 12-month share price fall. And despite a retrace in its FY 2024 dividends.
The ASX dividend stock in question here is Woodside Energy Group Ltd (ASX: WDS).
On the share price front, Woodside stock has come under selling pressure over the last 12 months, with many of the headwinds coming from lower oil and gas prices. Brent crude oil, for example, has slipped 12% over the past year, trading for US$75.48 per barrel at market close yesterday.
Along with some shareholder concerns over the company's significant spend on new acquisitions, this sees Woodside shares down 28% in 12 months.
On the passive income front, lower energy prices also took a bite out of Woodside's revenues and profits, with FY 2024 dividends decreasing from those paid out in FY 2023.
Not that the company isn't still highly profitable.
At its half-year results for the six months to 30 June, Woodside reported operating revenue of US$5.99 billion, down 19% year over year. While underlying net profit after tax was down 13.9%, it still came in at a healthy US$1.63 billion.
But with profits coming off the boil, the fully franked interim dividend of $1.02 a share was 18% lower than the prior interim dividend.
Still, Woodside delivered a total of $1.937 a share in dividends over the year.
At yesterday's closing price of $24.07, that sees this high-yielding ASX 200 dividend share trading on a fully franked trailing yield of 8.1%.
Or enough to bank $644 a year in passive income from an $8,000 investment.
Why I think Woodside remains a top ASX passive income stock
While global energy prices may remain subdued in the short term, I believe they're poised to rebound if and when the global economy picks up steam, and nations burn through more oil and gas.
I also think the Woodside share price and the passive income the company pays its shareholders could be a long-term beneficiary from the US election results.
Returning president Donald Trump is a big advocate of increased oil and gas exploration, having previously quipped, "Drill, baby, drill!"
While oil production in the US is likely to ramp up under Trump's leadership and potentially keep a lid on prices, Woodside is uniquely positioned to benefit with its expanding operations inside the US.
Over the past 18 months, the ASX 200 energy company has committed to investing approximately $30 billion in North America.
Commenting on its US operations in September, a Woodside spokeswoman said:
Woodside continually assesses organic and inorganic opportunities in Australia and across our global portfolio to set the company up for future growth and value creation.
Our recently announced acquisitions in the US – Tellurian and its Driftwood LNG development and OCI's clean ammonia project – are examples of such opportunities, delivering access to different markets and building on our existing position and capabilities in North America.
And with Woodside's growth projects like Scarborough in Australia and Trion in Mexico on track for production in 2026 and 2028, respectively, I think this high-yielding ASX 200 dividend stock will be a passive income gem for years to come.
