Should you buy Santos Ltd (Sto) shares compared to Woodside?

Santos shares trades on a cheaper valuation compared to Woodside, according to projections Santos Ltd ( ASX: STO) shares have been through plenty of ups and downs. While the Santos share price may be moving like a yo-yo, it's a good idea to look at how much dividend the business could pay.

Is Santos a good stock to buy in 2023?

Santos is down over the last year, six months, and in 2023 to date. Investors haven't been excited by the ASX oil giant recently. Interestingly, it does trade on a cheaper earnings multiple compared to Woodside Energy Group Ltd ( ASX: WDS ). According to Commsec, Santos is valued at 7x FY23's estimated earnings and 8x FY24's estimated earnings.

Is the Santos share price moving like a yo-yo?

While the Santos share price may be moving like a yo-yo, it's a good idea to look at how much dividend the business could pay. As an oil and gas ASX share, movements in energy prices can have a big impact on the profitability and how much the company is able to send to shareholders.

Does Santos pay a dividend?

According to Commsec, Santos could pay an annual dividend per share of 35.2 cents. If the company were to pay that amount, it would amount to a dividend yield of 5%, excluding any franking credits. But, keep in mind that dividends are not guaranteed.