The National Australia Bank Ltd. (ASX: NAB) share price has been throwing punches with the other big banks over the last month, gaining 5.5% during this time. The only big four constituent that did better during the past month was the Commonwealth Bank of Australia (ASX: CBA) with a 5.8% rise.
Shares in NAB are in fine form once again today following the publishing of November’s lending data yesterday. The data from the Australian Prudential Regulation Authority shows an increase in spending as COVID-19 restrictions are relaxed across the country.
Though, today’s focus is on the passive income potential for NAB shareholders in 2022.
Will it rain dividends for NAB shareholders?
Analysts over at Bell Potter believe 2022 could be another solid year for dividends from the National Australia Bank. According to the broker’s forecasts, NAB shareholders could land a fully franked dividend yield of 5.1% this year.
For reference, Australia’s second-largest listed bank by market capitalisation handed out $1.27 per share in dividends in 2021. Investors booked a dividend yield of ~6.1% based on the current NAB share price after applying franking credits.
At this stage, it is unknown exactly what amount NAB will pay in dividends this year. Although, the bank is targeting a 65% to 75% payout ratio according to its FY21 investor presentation.
To increase the dividends paid to shareholders this year, NAB will need to maintain its profits. Late last month, the major bank lifted its fixed-interest mortgage rate another 0.1% higher. This followed an increase of 0.5% at the beginning of December 2021.
NAB share price snapshot
It might be a surprise to some investors, but NAB shares have been the best-performing of the big four in the past 12 months.
During this time, the banking giant rallied more than 30% to its current $29.56 share price. Making up the podium finish, CBA and Australia and New Zealand Banking Group Ltd (ASX: ANZ) returned 24% and 22% respectively.
The post Could NAB (ASX:NAB) shares be a dividend gold mine this year? appeared first on The Motley Fool Australia.
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More reading
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- ASX 200 (ASX:XJO) midday update: Big four banks fall, Bega Cheese jumps again
- Analysts rate these ASX 200 dividend shares as buys
- Why is the NAB (ASX:NAB) share price having such a merry December?
- Bell Potter names 2 ASX 200 blue chip shares to buy in 2022
Motley Fool contributor Mitchell Lawler owns Commonwealth Bank of Australia. 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.
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