The National Australia Bank Ltd (ASX: NAB) dividend will soon be allocated to investors that are entitled to it. But, this is the last day for investors to buy NAB shares to get the dividend.

The ASX bank share recently announced its half-year result for the six months to 31 March 2023.

Upcoming NAB dividend

In that result, the bank announced that it was going to pay a fully franked, interim dividend of 83 cents per share.

The half-year dividend payment grew after the ASX bank share announced a 17% rise in cash earnings to $4.07 billion. NAB achieved higher profit thanks to stronger lending margins as there was an improvement in the net interest margin (NIM).

The NAB ex-dividend date is 10 May 2023. That means investors need to own shares before that date to be entitled to the interim dividend of 83 cents per share.

With today being 9 May 2023, this is the last day that people can buy NAB shares to get the payment.

The payment date is 5 July 2023, so shareholders would only have to wait two months before receiving the upcoming payment.

This dividend alone amounts to a grossed-up dividend yield of around 4.4%.

What next?

Commsec estimates currently suggest that NAB shares could pay a full-year dividend of 83 cents per share, which would mean it’s the same size as the half-year dividend.

If NAB were to pay that annual dividend, it would result in a grossed-up dividend yield of approximately 8.95%.

Talking about the current economic situation and outlook, NAB CEO Ross McEwan said:

Staying safe and maintaining prudent balance sheet settings has been a key strategic focus which positions us well for the risks and volatility stemming from recent rapid monetary policy tightening. Capital levels are above our targets, liquidity is strong, collective provision coverage remains well above pre COVID-19 levels and our FY23 term funding task is well advanced with $23 billion raised in 1H23.

The impact of higher living and interest costs on household spending and the broader economy is becoming more evident and we have a range of options available for customers needing support. Early signs that inflation is moderating are encouraging and we remain optimistic about the outlook – our bank and most customers enter this period from a position of strength and we are well placed to continue managing our business for the long term. We remain focused on the disciplined execution of our strategy to drive sustainable growth in earnings and shareholder returns over time.

NAB share price snapshot

Since the start of the year, NAB shares have dropped by over 9%.

The post Hoping to bag the boosted NAB dividend? You’d better hurry appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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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