For income investors, Woodside Energy Group Ltd (ASX: WDS) has long been one of the most closely watched dividend payers on the ASX.
The company distributes between 50% and 80% of its after tax profit as a fully franked dividend twice per year.
The overarching oil and gas price environment directly impacts the final dividend payout.
With oil prices surging in recent months, the income case for Woodside has rarely looked more compelling.
Here is the full picture of what shareholders are receiving in 2026.
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What Woodside paid for FY2025
In FY2025, Woodside paid a total fully franked dividend of 112 US cents per share, comprising a 53 US cent interim dividend paid in September 2025 and a 59 US cent final dividend paid in March 2026.
This represents an 80% payout ratio of underlying net profit after tax.
The total value of the FY2025 full-year dividend was US$2.1 billion.
This reflects the scale of Woodside's cash generation capacity at current energy prices.
The FY2026 outlook
The most important variable for Woodside's FY2026 dividend is the oil price, and right now that variable is moving firmly in shareholders' favour.
Oil prices surged to above US$112 per barrel in April 2026, levels not seen since June 2022, as disruptions to tanker traffic triggered what the World Bank described as the largest oil supply shock on record.
This translates into an initial reduction in global supply of approximately 10 million barrels per day.
Every sustained increase in the oil price flows almost directly into Woodside's revenue, given the company's relatively fixed cost base for LNG and oil production.
In Q1 2026, Woodside posted operating revenue of US$3.26 billion, up 7% on the prior quarter, driven by an 11% increase in its average realised price to US$63 per barrel of oil equivalent.
Furthermore, the Scarborough LNG project is 94% complete with first cargo targeted for Q4 2026.
This milestone will add meaningfully to production volumes and earnings capacity from late FY2026 onwards.
UBS forecasts Woodside's FY2026 dividend at approximately 109 US cents per share, broadly in line with FY2025, with the potential for a meaningful uplift if oil prices remain elevated through the second half of the year.
The risks worth knowing
Woodside's dividend is not as predictable as those paid by regulated infrastructure businesses or the major banks.
Indeed, the dividend moves with the oil price, and the oil price can fall as quickly as it rises.
Furthermore, CEO Meg O'Neill's departure in 2025 and the subsequent appointment of a new leadership team creates a period of strategic uncertainty that investors should factor in.
That said, the company's long-term contracted LNG revenue base provides a meaningful floor for cash generation even in softer oil price environments.
Foolish takeaway
Woodside offers one of the highest fully franked dividend yields available from an ASX large-cap stock, backed by a world-class LNG portfolio and a favourable oil price environment.
For income investors comfortable with commodity price variability, the current entry point looks attractive.
