The National Australia Bank Ltd. (ASX: NAB) share price has been treading lower in the past three weeks.
While NAB shares finished 0.19% higher to $31.68 yesterday, this hasn't been the case since 21 April.
In fact, the major bank's shares have fallen around 6% followed by turmoil across global markets. This is because of fears surrounding interest rate hikes, inflation, and a poor earnings season for major Wall Street companies.
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NAB shares set to go ex-dividend
Despite the volatility, some investors have been buying the bank shares following the company's half year results last week.
This is most likely because of the upcoming ex-dividend date for NAB shares.
Investors need to buy NAB shares before market close today to be eligible for the interim dividend. The ex-dividend date is on Wednesday 11 May.
It's worth noting though that historically when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company's shares after securing the dividend.
When can NAB shareholders expect payment?
For those who are eligible for the NAB interim dividend, shareholders will receive a payment of 73 cents per share on 5 July. The dividend is also fully franked which means shareholders can expect to receive tax credits from this.
In addition, investors can elect for the dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead.
There is no DRP discount rate, however price will be determined by the daily volume-weighted average (VWAP) from 18 May to 31 May.
The last election date for shareholders to opt into the DRP is on 13 May.
The dividend reflects a statutory payout ratio of 66.9% which is in line with management's stated dividend policy.
NAB share price snapshot
Since the beginning of 2022, the NAB share price has gained 10% and is up around 18% in the last 12 months.
The company's shares reached a 52-week high of $33.75 last month, before treading lower in the following days.
NAB commands a market capitalisation of roughly $101.96 billion and has a trailing dividend yield of 4.01%.
