Woodside Energy Group Ltd (ASX: WDS) shares are one of the most popular ASX dividend options because of the company's strength, dividend yield and potential future passive income payouts.
The ASX energy share usually has a good dividend yield, superior to that of peers like Santos Ltd (ASX: STO) and Beach Energy Ltd (ASX: BPT).
Woodside's dividend has jumped around over the last decade, with significant shifts in resource prices over time.
In the company's FY25 annual result (reported in February), it said that operating revenue declined 1%, underlying net profit declined 8%, statutory net profit dropped 24% and operating cash flow rose 23%. This led to the full-year dividend declining by 8%.
In this article, we're going to look at the potential annual FY27 dividend, which will be paid partly in 2027 and partly in 2028 because its FY27 annual result and final dividend won't be announced until February 2028.
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FY 2027 dividend projection for owners of Woodside shares
According to the projection on Commsec, the ASX energy share is estimated to pay an annual dividend per share of A$2.918 for the 2027 financial year.
At the time of writing, this forecast translates into a dividend yield of 10.1% excluding franking credits and 14.5% including franking credits.
If someone were to invest $8,000 in Woodside, they would be able to buy 278 Woodside shares (with a little bit of money left over).
With those 278 Woodside shares, investors could receive $811.20 of cash and perhaps $347.66 of franking credits.
Is this a good time to invest in the ASX energy share for passive income?
According to CMC Invest, there have been nine recent analyst rating calls on the business in the last three months.
Of those nine ratings, two were a buy, five were a hold and two were a sell. So, on average, the investment professionals are neutral on the company's valuation right now (at the time of writing).
The average price target of those nine analyst ratings is $31.39. That means, collectively, those analysts are predicting the Woodside share price will (at the time of writing) rise by around 10% over the next year.
In the past year, the Woodside share price has been close to $22 and above $35. So, analysts are expecting the company to be closer to its 52-week high than its 52-week low, following the Middle East events. The dividend could play an important part in whether the Woodside shares deliver a market-beating return in the next 12 months or not.
But, energy prices can be volatile, so other ASX shares may prefer investments that are more stable and are more predictable.
