Up 41% since April, are Woodside shares a good buy today?

A leading expert delivers his verdict on Woodside shares and dividends.

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Woodside Energy Group Ltd (ASX: WDS) shares have been on a tear since hitting multi-year closing lows of $19.15 on 9 April.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock are up 0.3% in early afternoon trade today, changing hands for $26.91 apiece.

That means investors who followed Warren Buffett's advice to be greedy when others are fearful and bought shares on 9 April will be sitting on gains of 40.5% on that investment.

And that's just in fourth months.

Longer-term, Woodside shares are up a more modest 6.1% since this time last year. Though that doesn't include the (rounded) $1.87 a share in fully franked dividends the company paid out over the full year.

At the current share price, that sees Woodside stock trading on a fully franked trailing dividend yield of 6.9%.

Which brings us back to our headline question.

With the recent outsized gains already in the bag, is the ASX 200 oil and gas stock still a good buy today?

An oil worker in front of a pumpjack using a tablet.

Image source: Getty Images

Should you buy Woodside shares today?

Argonaut's Harrison Massey recently ran his slide rule over the big Aussie energy company (courtesy of The Bull).

Noting Woodside's strong recent run, Massey said, "The company's share price has recovered from a close of $19.15 on April 9 to trade at $26.915 on August 7."

Massey, who has a hold recommendation on Woodside shares, added:

Production of 50.1 million barrels of oil equivalent in the second quarter of fiscal year 2025 was up 2% on the prior quarter. It updated full year production guidance to between 188 million and 195 million barrels of oil equivalent.

The company reported its Q2 results on 23 July. Other highlights included an 8% year on year jump in quarterly revenue to US$3.28 billion.

Investors responded positively to the Q2 update, sending Woodside stock up 1.5% on the day.

And Woodside shares have also been catching tailwinds from global conflicts in the oil rich Middle East and Russia's war with Ukraine.

According to Massey:

The share price also benefited from increasing crude oil prices in response to wars in the Ukraine and Gaza. Woodside remains the pre-eminent oil and gas exposure for any ASX-focused portfolio, and the company consistently pays a solid dividend.

Indeed, on 9 April the Brent crude oil price stood at US$63 per barrel. Amid fears of global supply disruptions, the oil price hit US$79 per barrel by 19 June.

Today, with a pending meeting between US President Donald Trump and Russian President Vladimir Putin to end the Ukraine conflict on the cards, the oil price has retreated back to US$66 per barrel.

But that may not last.

"If worldwide tensions continue and crude oil supplies are threatened, Woodside should continue its rally even further," Massey concluded.

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.

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