NAB (ASX:NAB) share price is now trading on a forecast 4.4% fully franked dividend yield

NAB shareholders have enjoyed solid returns since this time last year.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The National Australia Bank Ltd (ASX: NAB) share price has been pushing higher over the last 12 months, up 60%. In comparison, the S&P/ASX 200 Index (ASX: XJO) has posted a 24% gain.

At Friday's market close, NAB shares added to the strong gains, finishing 1.03% higher to $27.35.

Australian dollar $100 notes fall out of the sky, indicaticating a windfall from ASX bank shares

Image source: Getty Images

What did NAB last report?

Investors have been bidding on the NAB share price in 2021 as the company continues to impress the market.

In early August, NAB updated the ASX with its third-quarter scorecard, highlighting an "encouraging" performance.

Cash earnings rose by 10.3% to $1.7 billion compared with Q3 last year, supported by significantly better credit impairment outcomes. Particularly, momentum picked up across its business portfolio.

In Australia, house lending rose 2% along with the small-to-medium business segment, growing 4.3%. The New Zealand segment saw lending increase by 2.7%.

Unaudited statutory net profit for the group came to $1.65 billion.

NAB noted that continued COVID-19 outbreaks and lockdowns are creating uncertainty and challenges for some customers. However, it remains optimistic on the long-term outlook for both Australia and New Zealand.

It appears that the bank is poised for a strong return when the economies re-open following the accelerated vaccination programs.

How much is NAB scheduled to pay in dividends?

The bank is scheduled to report its full-year results on 9 November. Investors may be wondering what kind of dividend payment to expect ahead of the release.

NAB paid a fully franked dividend of 60 cents per share in July for the first half of FY21. This was double of FY20's dividend (30 cents) and also double of the prior corresponding period (H1 FY20).

Goldman Sachs is forecasting NAB to reward shareholders with a total FY21 dividend payment of 125 cents. This implies a final dividend payment for FY21 of 65 cents per share.

When calculating against the current share price, NAB is trailing on a forecast fully-franked dividend yield of 4.4%. It is expected that the payout ratio will be somewhere between 68% to 70% of the bank's profits.

It's worth remembering that the company has been a relatively consistent dividend payer over the years. Before the onset of COVID-19, the bank had been paying shareholders fully franked dividends of 99 cents on a bi-annual basis.

About the NAB share price

In 2021, the NAB share price has continued to rise in value, gaining more than 20% for investors.

NAB commands a market capitalisation of approximately $89.76 billion, with about 3.2 billion shares on its books.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

Buy Macquarie and this ASX 200 passive income share: analysts

These could be the shares to buy if you want a passive income boost.

Read more »

ATM with Australian hundred dollar notes hanging out.
Dividend Investing

4 ASX 200 shares trading ex-dividend on Wednesday

These ASX 200 shares will be rewarding their shareholders with dividends very soon.

Read more »

A woman wearing glasses and a black top smiles broadly as she stares at a money yarn full of coins representing the rising JB Hi-Fi share price and rising dividends over the past five years
Dividend Investing

Buy these ASX dividend shares with big yields today: experts

These ASX shares could give your passive income a major boost during the cost of living crisis.

Read more »

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices
Dividend Investing

3 ASX 200 shares trading ex-dividend on Tuesday

Expect to see these 3 ASX 200 shares drop tomorrow

Read more »

A couple sits in their lounge room with a large piggy bank on the coffee table. They smile while the male partner feeds some money into the slot while the female partner looks on with an iPad style device in her hands as though they are budgeting.
Dividend Investing

Buy these ASX dividend shares right now for income: analysts

Here's why analysts say these could be top options for income investors this month...

Read more »

A woman smiles widely while using an old fashioned hand set telephone with dial.
Dividend Investing

Here's how much I'd need to invest in Telstra shares to generate a $200 monthly income

Telstra has grown its dividends again in 2023.

Read more »

A sophisticated older lady with shoulder-length grey hair and glasses sits on her couch laughing while looking at her phone
Dividend Investing

I reckon these are 2 of the best ASX income stocks to buy in March

These look like two winners for income to me.

Read more »

Woman holding $50 notes and smiling.
Dividend Investing

Analysts name 2 ASX dividend shares to buy with 4%+ yields

These ASX dividend shares good be quality options for income investors right now.

Read more »