The NAB dividend is being dished out today. Here’s the lowdown

The National Australia Bank Ltd (ASX: NAB) share price is trading lower on Wednesday.

In morning trade, the banking giant’s shares are down 0.35% to $30.68.

Though, there’s a couple of reasons that shareholders won’t be too disappointed with this.

The first is that despite today’s decline, as you can see below, the NAB share price is still up 8% over the last 12 months.

This compares favourably to the the S&P/ASX 200 Index (ASX: XJO), which is down 2% over the same period.

NAB dividend

Another reason shareholders won’t be too downhearted today is the NAB dividend.

Last month, NAB released its full year results for the 12 months ended 30 September and reported cash earnings of $7,104 million. This represents an increase of 8.3% year over year.

Management advised that this reflects strong earnings growth from its Business & Private Banking and Corporate & Institutional Banking businesses, which offset an earnings decline from the Personal Banking business.

This robust performance allowed the NAB board to declare a fully franked final dividend of 78 cents per share, which was an increase of 16.4% over last year’s final dividend. This took NAB’s full year dividend to a fully franked 151 cents per share.

The good news for shareholders is that NAB’s fully franked final dividend of 78 cents per share should be hitting their bank accounts today. (Unless they chose to take advantage of the bank’s dividend reinvestment program.)

Should you buy shares?

Despite smashing the market this year, Goldman Sachs still sees plenty of upside ahead for the NAB share price. It currently has a buy rating and $35.41 price target on its shares.

This implies potential upside of 15.4% for investors over the next 12 months.

As for dividends, Goldman expects the NAB dividend to increase to 173 cents per share in FY 2023. This will mean a generous 5.6% fully franked yield, stretching the total potential return to 21%.

The post The NAB dividend is being dished out today. Here’s the lowdown appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Scott Phillips.

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