If you're an ASX income investor looking for a source of significant dividend income, ASX energy shares are certainly a corner of the market worth looking at.
Sure, the dividend income available from energy shares can be volatile and subject to the wild ups and downs of the global energy market. But boy, can investors enjoy some hefty passive income paycheques at the right time of the cycle.
So today, let's discuss two ASX energy shares that I think are worth considering as part of a diversified dividend income portfolio for this February and beyond.
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2 ASX energy shares to consider for income this February
Woodside Energy Group Ltd (ASX: WDS)
First up, we have the ASX's largest oil and gas share, Woodside. This is one of my favourite energy shares, as it enjoys a significant size and scale advantage over smaller rivals.
This company also boasts an impressive global portfolio of high-quality, long-life assets and is investing heavily in new ones.
Woodside has paid out a torrent of dividend income in recent years, with investors enjoying annual payouts as high as $3.06 per share as recently as 2021. 2024's total of $1.94 per share was not quite in that league, but still substantial. It gives Woodside Energy shares a trailing dividend yield of 7.8% (fully franked) at current pricing.
We don't yet know what 2025's payouts will look like yet, of course. But I still think whatever Woodside brings to the table will beat out most of its ASX competition in the energy space.
BetaShares Global Energy Companies ETF (ASX: FUEL)
This ASX exchange-traded fund (ETF) has a lot to offer income investors (aside from a red-hot ticker code). In global terms, the ASX's energy sector is a relative minnow. That's why I think this ETF has a lot to offer.
It invests in a portfolio of the largest energy shares in the world, including many that you may visit regularly as a motorist. These include Shell, ExxonMobil, BP and Chevron, as well as Petrobras, ConocoPhillips and PetroChina.
Just over 58% of this ETF's holdings are currently invested in American energy shares. But the portfolio also gives investors exposure to companies from other markets like Canada, the Netherlands, France, Britain, Brazil and China.
FUEL typically pays out a dividend distribution every six months. Its last two payments total 25.04 cents per unit, giving this ETF an unfranked trailing yield of 3.85% at current pricing.
