$10,000 invested in Woodside shares 4 years ago is now worth…

Atop capital growth, Woodside shares have paid market-beating dividends.

| More on:

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

Key points
  • Woodside shares have fluctuated over the past four years, influenced by company-specific factors and global oil prices.
  • A $10,000 investment in Woodside shares in 2021 would be worth significantly more today, considering both capital gains and market-leading dividends, enhanced by franking credits.
  • Woodside recently projected a 55% increase in net operating cash flow by the early 2030s, supported by significant growth projects, aiming to boost both sales and dividends substantially.

Woodside Energy Group Ltd (ASX: WDS) shares have experienced some sizeable price swings, both higher and lower, over the past four years.

Some of the share price moves were driven by company specific issues, both positives and negatives.

And, as you'd expect, the S&P/ASX 200 Index (ASX: XJO) energy stock also is highly leveraged to global oil prices.

In afternoon trade today, Woodside shares are down 0.3%, changing hands for $24.95 apiece.

So, if you'd invested $10,000 in the Aussie oil and gas giant four years ago, just how much would you have today?

Let's dig in.

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

Image source: Getty Images

Taking a $10,000 stake in Woodside shares

Four years ago, on 26 November 2021, you could have bought Woodside shares for $21.60 each.

Meaning your $10,000 investment would have netted you 462 shares, with enough change left over for a fast-food lunch.

Today, those same shares are worth (a rounded) $11,527, equating to a gain of $1,527.

But wait. There's more!

There's a good reason Woodside is popular among passive income investors. Namely, the company's lengthy track record of paying market-beating dividends.

If you bought Woodside shares four years ago, you'd have received the past eight fully franked dividends.

According to my trusty calculator, those eight Woodside dividends total $10.06 per share.

So, if we add that back into today's price, then the accumulated value of the shares you bought four years ago is now worth $35.01.

Meaning your $10,000 investment would have grown to $16,175 today. With some potential tax benefits from those franking credits.

What's the latest from the ASX 200 energy stock?

The last price-sensitive news for Woodside shares was the company's Capital Markets Day on 5 November.

The company captured investor interest with forecasts that it expects to increase net operating cash flow by 55% by the early 2030s. Woodside's net operating cash flow came in at US$5.8 billion in 2024, with management aiming to boost that to US$9 billion, representing a compound annual growth rate (CAGR) of more than 6%.

Management also aims to lift sales from 203.5 million barrels of oil equivalent (MMboe) in 2024 to more than 300MMboe by 2032.

On the passive income front, Woodside plans to boost its dividends by 50% from 2024 levels to what it expects to pay out in 2032.

That strong outlook is supported by the company's growth projects, including the Scarborough LNG project, the Beaumont New Ammonia project, and the Louisiana LNG project.

Commenting on the outlook for Woodside shares on the day, CEO Meg O'Neill said:

Woodside is a compelling investment opportunity supported by world-class assets, an integrated value chain, long-term customer relationships and a strong balance sheet. Woodside generates durable cash flows and has rewarded shareholders with approximately US$11 billion in dividends since 2022.

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 Energy Shares

Oil worker using a smartphone in front of an oil rig.
Energy Shares

Karoon Energy share price on watch: Who Dat East project gets green light

The Who Dat East development in the Gulf of America has been officially approved.

Read more »

Oil industry worker climbing up metal construction and smiling.
Energy Shares

Woodside vs Santos: Which ASX energy stock has made investors richer this year?

Find out which of the two oil and gas majors has had the biggest upside over the past 6 to…

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Why AGL shares are a top passive income buy today

A leading analyst expects AGL shares to deliver attractive passive income and capital growth.

Read more »

Red sell button on an Apple keyboard.
Broker Notes

Sell alert! Why this expert is calling time on Whitehaven and Beach Energy shares

A leading analyst forecasts mounting headwinds for Whitehaven and Beach Energy shares. But why?

Read more »

Multiracial happy young people stacking hands outside - University students hugging in college campus - Youth community concept with guys and girls standing together supporting each other.
Energy Shares

Contact Energy FY26 earnings: Profits soar as renewables drive growth

Contact Energy’s full‑year profits jumped 28% as the company accelerates its renewable energy buildout and completes a major hydro acquisition.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Energy Shares

If I invest $10,000 in Woodside shares, how much passive income will I receive in 2027?

Woodside could be a particularly strong option for passive income.

Read more »

Gas and oil worker working on pipeline equipment.
Energy Shares

The ASX 200 hit record highs this week, so why are Woodside shares stumbling?

Woodside’s outperforming shares are set to finish the week in the red. But why?

Read more »

Two oil workers with hard hats shake hands in the foreground of oil equipment.
Energy Shares

Omega Oil & Gas share price in focus as Canyon-3 drilling stays on schedule

Omega Oil & Gas reports Canyon-3 drilling is progressing on schedule, with key results for its Queensland energy campaign due…

Read more »