This ASX banking share has returned 20% for the year so far, 6.4% over the last month and offers a grossed-up dividend of 9.1% on current prices. This bank is none other than National Australia Bank Ltd (ASX: NAB), and its successes this year have taken investors by surprise – after all, it's not often that an ASX 'Big Four' bank rolls out numbers like these. But are NAB shares a buy today?
What's been happening with the NAB share price this year?
NAB, like the other 'Big' Four' banks, has spent the year basking in the absence of glow from the 2018 Banking Royal Commission.
Cast your mind back to January and the headlines about misconduct, rip-offs and corporate greed that were still common at the time. The Commission's final report was due out in March and investors didn't know if stricter regulations and profit-choking restrictions would be recommended.
Adding to the uncertainty, Labor was all-but-certain to storm into government in May on a platform of negative gearing reform and abolition of excess franking credits (both very unfriendly ideas for bank shareholders). Polls were pointing to a big Labor win and this didn't do much to entice new investors into bank shares.
As it turns out, all of these events failed to come to pass. Markets have a tendency to price things in before they happen, and this was evident in NAB's share price for the first few months of 2019. NAB shares jumped nearly 10% following the surprising election result alone.
More recently, NAB has appointed a new CEO – Ross McEwan – to whom the market has responded very positively. Mr McEwan has had a very successful tenure over at the Royal Bank of Scotland, and his appointment is getting investors excited about NAB's future.
Should you bank some NAB shares today?
All puns aside, I think NAB is a quality bank with a meaty dividend and would make a fine addition to any dividend-orientated portfolio. Saying this, I personally don't think there's too much petrol left in the NAB share price tank as the market is now pricing NAB at fair value. Although I think Mr McEwan is a great appointment, there is only so much growing a 'Big Four' bank can do.
