NAB shares offer 15% upside and growing dividends: broker

The National Australia Bank Ltd (ASX: NAB) share price could be in for a boost in the near term, according to one top broker.

In addition to that, the broker is tipping the ‘big four’ bank to grow its full-year dividends a whopping 34% by financial year 2024.

The NAB share price last traded at $30.24.

Let’s take a closer look at what top broker Goldman Sachs is forecasting for the S&P/ASX 200 Index (ASX: XJO) banking favourite.

Top broker tips 15% upside for NAB stock

Goldman Sachs is a fan of NAB shares due to the company’s overweight exposure to commercial lending, my Fool colleague James reports.

The broker believes momentum will favour commercial volumes more than housing volumes over the next 12 months. It tips NAB as the best buy for investors to garner exposure to such a thematic.

On the back of its bullish predictions, Goldman Sachs has slapped NAB shares with a $34.63 price target and a buy rating. That represents a potential 14.52% upside.

And that’s not all. The broker also expects NAB shares to offer $1.50 per share of dividends in financial year 2023. That number is tipped to rise to $1.70 per share in financial year 2024.

For comparison, the bank offered investors $1.27 per share in dividends over the course of financial year 2021.

As it adheres to a fiscal year ending 30 September, that’s the last full year the company has so far reported on.

Goldman Sachs’ dividend prediction means the broker is expecting NAB to grow its dividends by a whopping 33.86% over the coming years – certainly nothing to scoff at.

NAB share price snapshot

The NAB share price has outperformed through 2022 so far.

It has gained 3% since the start of the year. It’s also 5.5% higher than it was this time last year.

For comparison, the ASX 200 has dumped 10% year to date and 9% over the last 12 months.

The post NAB shares offer 15% upside and growing dividends: broker appeared first on The Motley Fool Australia.

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More reading

• Experts say these 2 ASX dividend shares are buys
• Why ASX bank shares are more likely to slowly grind lower than crash, despite famed Wall Street bear saying it’s time to short them
• Are NAB shares worth buying in September?
• Is this why the Macquarie share price was ‘steaming ahead’ on Friday?
• Why is the ASX 200 diving 2% on Tuesday?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. 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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