Woodside Energy Group Ltd (ASX: WDS) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed on Friday trading for $22.94. After taking a pause for the King's Birthday ASX holiday yesterday, shares are changing hands for $23.29 in morning trade on Tuesday, up 1.5%.

For some context, the ASX 200 is up 0.2% at this same time.

As you're likely aware, however, Woodside has underperformed the benchmark over the past year, dropping 14.0% in 12 months.

But the ASX 200 oil and gas stock has come roaring back since early April. And even after gaining 21.6% since the recent 9 April lows, Woodside shares still trade on a fully franked 8.0% trailing dividend yield.

So, should I buy shares today for that juicy passive income?

Woodside shares in the spotlight

Shaw and Partners' Jed Richards recently ran his slide rule over Woodside shares (courtesy of The Bull).

"In late May, the Federal government made a proposed decision to grant environmental approval for the North West Shelf project extension," said Richards, who has a hold recommendation on the company.

"Woodside shares responded positively to news of preliminary approval," he added.

The government's proposed approval was announced on 29 May.

After working more than six years to gain an extension for its North West Shelf gas project, opposed by environmental groups and locals concerned over potential damage to Indigenous heritage sites, the approval was welcomed by the company and most of its shareholders alike.

"This proposed approval will secure the ongoing operation of the North West Shelf and the thousands of direct and indirect jobs that it supports," Woodside's chief operating officer Australia, Liz Westcott, said on the day.

She noted that the project had paid more than AU$40 billion in royalties and taxes since starting operations in 1984.

Atop the North West Shelf approval, Woodside shares have also found recent support from the company's strong first-quarter performance, reported on 23 April.

According to Shaw and Partners' Richards:

Revenue of $3.315 billion in the first quarter of fiscal year 2025 was up 13% on the prior corresponding period. Growth is supported by major project progress and rising global energy demand.

As economic activity strengthens across the globe, energy consumption is rebounding.

With that in mind, Richards concluded, "Holding WDS offers long term exposure to LNG and oil markets with upside potential."

While Richards recommends shareholders hold onto their Woodside stock, he's not yet recommending it as a buy.

But with Woodside shares offering "upside potential" and trading on an 8.0% fully franked dividend yield, I'd at least put this passive income star at the top of your watch list.