Woodside Sterling dividend

[tjh290633]

https://www.investegate.co.uk/announcem ... nd/8084544

The US cent currency exchange rate applicable to the dividend payable in Australian dollars, British pounds sterling and New Zealand dollars is determined based on the foreign currency rates around the record date of 8 March 2024.

The amount payable in Australian dollars, British pounds sterling and New Zealand dollars is detailed below:

Currency			Exchange rate	Dividend per share in local currency

AUD - Australian dollar		0.654450	0.91680037

GBP - Pound Sterling		1.281530	0.46819037

NZD - New Zealand dollar	0.615170	0.97534015

Shareholders will receive their dividend in Australian dollars unless their registered address is in the United Kingdom (in which case they will receive their dividend in British pounds sterling), in the United States of America (in which case they will receive their dividend in US dollars) or in New Zealand (in which case they will receive their dividend in NZ dollars), or unless they have elected to receive their dividend electronically using Global Wire Payment Service from the Woodside share registry.

TJH

[BullDog]

I don't seem to be able to find definitive numbers for dividend cover at Woodside. Perhaps it's because they're a fairly newly independently listed company. HL reports a current dividend cover of just ~0.6. That's not great news on the face of it and could suggest the present high yield on the shares is unsustainable? Does anyone have better insight to Woodside and likelihood of dividend reduction? Seems to good to be true? Thanks.

[tjh290633]

I don't seem to be able to find definitive numbers for dividend cover at Woodside. Perhaps it's because they're a fairly newly independently listed company. HL reports a current dividend cover of just ~0.6. That's not great news on the face of it and could suggest the present high yield on the shares is unsustainable? Does anyone have better insight to Woodside and likelihood of dividend reduction? Seems to good to be true? Thanks.

Have you looked at the Annual Report and Accounts? The Free Cash Flow is more than twice the Dividends, if I have read it correctly.

TJH

[daveh]

I don't seem to be able to find definitive numbers for dividend cover at Woodside. Perhaps it's because they're a fairly newly independently listed company. HL reports a current dividend cover of just ~0.6. That's not great news on the face of it and could suggest the present high yield on the shares is unsustainable? Does anyone have better insight to Woodside and likelihood of dividend reduction? Seems to good to be true? Thanks.

It's already happened. Last 4 dividends in dollars 1.09, 1.44, 0.80, 0.60. so a marked fall in the dividends.

[pyad]

I don't seem to be able to find definitive numbers for dividend cover at Woodside. Perhaps it's because they're a fairly newly independently listed company. HL reports a current dividend cover of just ~0.6. That's not great news on the face of it and could suggest the present high yield on the shares is unsustainable? Does anyone have better insight to Woodside and likelihood of dividend reduction? Seems to good to be true? Thanks.

WDS is far from newly listed as it has been on the Australian exchange for at least 30 years. You're prob thinking of UK investors who acquired WDS shares in 2022 as a result of being BHP investors when it distributed WDS shares to its shareholders, following the sale of its oil interests to WDS.

Mining and oil share divs are not progressive but are based on a function of profits or cash flows. These are cyclical as they depend largely upon the market prices of the minerals they produce which are beyond their control. Given the substantial flucs in those prices, there is never in consequence likely to be a smooth upward trend of payouts, especially in the shorter term. In that respect such shares differ from industrials generally which have a much greater tendency towards a smooth div progression over time. Like WDS, BHP and RIO for example slashed divs in 23 but against that there have been some spectacular payouts in the past, including the WDS distribution itself which was a div in kind to BHP holders.

If you want to hold shares in these sectors for income, you have to accept the big div flucs.