Woodside Energy Group Ltd (ASX: WDS) shares have been pushed into the spotlight in 2026 amid ongoing oil supply concerns and macroeconomic pressures.
Volatility surrounding continued conflict in the Middle East has been a strong tailwind for Woodside shares so far this year.
The US-Iran war has shown renewed signs of cooling. But each time it looks like conflict is calming down, it ramps back up again. The region is highly volatile, and the movement of oil from the area will continue to be uncertain until a final resolution is reached.
Oil shipping disruptions and production cuts pushed oil prices to a multi-year high of around US$111 per barrel in April.
Trading Economics data crude oil is now trading around US$89 per barrel. That's a 4% increase over the past month and 45% higher than last year.
It's not just volatile oil prices driving the company's shares higher, either. ASX energy companies have also enjoyed a rise in production and improved cash flow.
Woodside grabbed headlines late last month when it posted its first-half FY26 update. The company reported a 13% increase in operating revenue, a 27% increase in NPAT, a 7% increase in underlying NPAT, and a huge increase in free cash flow to US$352 million.
This strong performance is great news for investors, especially those looking to earn a good passive income from their investment in Woodside shares.
Image source: Getty Images
What's the latest out of Woodside shares?
At the time of writing, Woodside shares are trading for $31.41 each. That's a 33% increase for the year-to-date and 26% higher than this time last year.
What does Woodside's dividend look like?
Woodside traditionally makes two fully franked dividend payments to shareholders every year, payable in March and September.
As part of the company's latest financial update, its management declared a fully franked interim dividend of 57 US cents per share (the equivalent of 79.5 Australian cents). It paid this to investors last month.
At the time of writing, that translates to a dividend yield of around 5.1%.
What is the oil and gas major forecasted to pay its shareholders in FY26 and FY27?
CommSec forecasts show Woodside is expected to pay a full-year FY26 dividend of AU$1.764 in FY26 and AU$2.149 in FY27.
So, how many Woodside shares do I need to generate $1,000 per month in passive income in FY27?
First, we'd need to calculate what $1,000 per month in passive income is over the year ($12,000). The oil and gas giant doesn't pay monthly, so we can only calculate it annually.
In order to earn $12,000 per year in passive income from Woodside shares in FY26, at $1.764 per unit, investors would need to own around 6,802 shares.
To earn the same amount from the $2.149 projected dividend in FY27, investors would need to own roughly 5,583 Woodside shares.
What would that cost?
At a $31.41 share price, 6,802 shares would require an investment of approximately $213,650 for FY26. This would give an annual passive income of around $12,000 (equivalent to $1,000 per month).
To earn the same amount in FY27, the 5,583 shares would cost closer to $175,362.
