The National Australia Bank Ltd (ASX: NAB) share price has long been seen as the top dividend share among the big four banks.
There's little doubt that the 2018 Financial Services Royal Commission certainly shook up the ASX banking sector. Many of the Aussie banks have been under intense scrutiny ever since, which has hurt valuations.
In the last 12 months, the S&P/ASX 200 Financials Index (INDEXASX: XFJ) is up just 6.90%. But despite broader underperformance, could NAB shares finally be back in the buy zone?
Why the NAB share price could be back in the buy zone
The Aussie bank has had a big couple of years with a change of leadership and almost-divestment of its wealth arm. NAB scrapped a planned sale of MLC Wealth in November 2019 and customer remediation costs have blown out to $1.1 billion.
However, I think NAB is fundamentally still a very good ASX dividend share. The NAB share price is trading at a price-to-earnings (P/E) ratio of 15.6 times with a dividend yield of 6.12% per annum.
Those numbers are looking pretty attractive compared to NAB's ASX banking peers.
Commonwealth Bank of Australia (ASX: CBA) trades at 16 times with a 4.90% dividend yield. Westpac Banking Corp (ASX: WBC) has a P/E of 13.5 times and a 6.82% yield.
However, I think Westpac's alleged anti-money laundering and counter-terrorism financing breaches make it a risky buy. NAB's lack of headlines could make the NAB share price worth a look right now.
You might also be wondering if the regional banks could be worth a look. It is true that they have largely avoided the same scandals as the big four. However, we saw from the Bendigo and Adelaide Bank Ltd (ASX: BEN) half-year result that long-term profitability is a challenge.
The NAB share price has gained 9.67% in 2020 and I think the positive momentum can continue.
Foolish takeaway
NAB has a new leadership team at the helm and could be well-placed for growth. The Aussie bank is set to report its half-year results in May, which will be the next big test.
Overall, I think good relative value and a strong dividend put the NAB share price in the buy zone this year.
